Savings Model Exercise [30 pts]
Your Name:
To complete this exercise, you need to:
Have the completed Savings Model built in class (see the Virtual Classroom)
Know how to load and unload various simulation results (Also explained in class using Control Panel)
Know how to run simulations with different values assigned to variables
What to Do:
Run following simulations using the file names as instructed.
After each run, copy and paste the graph of “Savings” in this document.
Unload the simulation run (the VDF file) from the model before running the next simulation. This way, your graphs should show one line at a time.
Simulation #1
File Name Base
Run simulation without making any changes. This shows the baseline behavior.
Paste your Savings graph here:
Simulation #2
File Name No Spending
Click Sim Set Up. While in the simulation mode, change the Withdrawal Rate to 0. (i.e. 0% of the Savings Withdrawn.). Run.
Paste your Savings graph here:
Simulation #3
File Name Excess Spending
Interest Rate = 0.1; Withdrawal Rate = 0.3
Paste your Savings graph here:
Simulation #4
File Name Balanced Spending
Interest Rate = 0.3; Withdrawal Rate = 0.3
Paste your Savings graph here:
Simulation #5
File Name Aggressive Saving
Interest Rate = 0.3; Withdrawal Rate = 0.05
Paste your Savings graph here:
Simulation #6
File Name My Own
Pick your own Interest Rate and Withdrawal Rate.
Paste your Savings graph here:
Save this document and submit it via Blackboard.
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