Question

You begin on 1 January 2015 by making an initial deposit of $5,000 to open a savings account at Bank of Mason. This account pays 0.135% interest per month. Every even numbered month, you withdraw $500 to pay your tuition installment balance. At the end of December each year you receive a $2,000 end-of-year bonus from your employer which you deposit into your account. Run your simulation until your account balance goes negative. • Question 1: • Question 2: During what month does you account balance go negative after you make a monthly withdrawal Prepare a plot showing your account for all months Note: For this problem, using the dot-operator method will NOT be accepted! This is a 5 part question. Part 1: Scan of Handwritten code, Part 2: m-file, Part 3: Screenshot, Part 4: Month balance goes before zero, Part 5: output plot To answer this part of ICE13B, upload your Scan of the Handwritten code.

Answer 1

MATLAB CODE:

INTEREST_PER_MONTH = 0.135;

% Deposit initial amount to the account

balance = 5000;

account = [balance];

% Start simulation

m = 1;

while balance >= 0

    % Credit interest to the account balance

    interest = balance*INTEREST_PER_MONTH/100;

    balance = balance + interest;

    account = [account balance];

    m = m + 1;

    % If its an even month, withdraw $500

    if mod(m, 2) == 0

        balance = balance - 500;

    end

    % It its December, credit $2000

    if m == 12

        balance = balance + 2000;

    end

end

account = [account balance];

fprintf('The account balance goes negative in %d months\n', m);

% Plot account of all months

x = 0:m;

y = account;

plot(x, y);

grid on;

xlabel('Months');

ylabel('Account balance (in USD)');

OUTPUT:

Command Window >> main The account balance goes negative in 30 months fx >>

Figure 1 - O X File Edit View & Insert Tools Desktop Window A 2. Help 0 E O 6000 5000 Account balance in USD) - 1000 o 5 10 15 Months 20 25 30

FOR ANY HELP JUST DROP A COMMENT