Exercise

# Deposits of the saving plan

Now that you have defined the variables `discount_factors`

, `deposits`

and `payments`

, you are ready to determine the value \(K\) of the yearly savings deposits using the actuarial equivalence relationship between the deposits (red cash flow) and the payments (blue cash flow).

Instructions

**100 XP**

- Calculate the present value of the deposit pattern as the
`sum()`

of the elementwise product of`deposits`

and`discount_factors`

. - Do the same for the payment pattern by summing over the product of
`payments`

and`discount_factors`

. - Using the concept of actuarial equivalence, the yearly deposit
`K`

in the first four years can be calculated by dividing`PV_payment`

by`PV_deposit`

.