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2. [15Emma has finished paying her parents and decides that she will divert most of those payments towards her daughter's RESP and her own RRSP.

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2. [15Emma has finished paying her parents and decides that she will divert most of those payments towards her daughter's RESP and her own RRSP. She will divert $600 monthly to her RRSP. Her daughter has just turned 4 years old and will enter university when she is 18 years old. Emma expects her daughter to contribute to her own education but plans to have $42.000 available when her daughter starts university. (RESP have government grants: RRSP have tax deferrals and refunds and both have withdrawal rules. These will be ignored here. Only the tax-free growth will be assumed.) Emma has assembled a portfolio for her RRSP that will return 5.2% compounded monthly. The education portfolio will return 3.8% compounded monthly (3) How much must Emma deposit monthly to fund her daughter's education as planned? [7| Emma daughter is now 16 years old. The education portfolio has been increasing in value according to plan. Emma's parents have offered to provide $2,000 to their granddaughter for her 18" birthday for use towards her university. Does Emma need to continue contributing to her daughter's education fund for the remaining two years? If so, how much must the monthly amounts be for the remaining 2 years? 6. [5] Emma would like to retire 25 years after her daughter begins university. She would like to have SL.IM in her fund at retirement. If she increases her deposits by 50% once her daughter begins university, will Emma achieve her goal? If there is a shortfall, determine how much; if there is a surplus, determine how much. 2. [15Emma has finished paying her parents and decides that she will divert most of those payments towards her daughter's RESP and her own RRSP. She will divert $600 monthly to her RRSP. Her daughter has just turned 4 years old and will enter university when she is 18 years old. Emma expects her daughter to contribute to her own education but plans to have $42.000 available when her daughter starts university. (RESP have government grants: RRSP have tax deferrals and refunds and both have withdrawal rules. These will be ignored here. Only the tax-free growth will be assumed.) Emma has assembled a portfolio for her RRSP that will return 5.2% compounded monthly. The education portfolio will return 3.8% compounded monthly (3) How much must Emma deposit monthly to fund her daughter's education as planned? [7| Emma daughter is now 16 years old. The education portfolio has been increasing in value according to plan. Emma's parents have offered to provide $2,000 to their granddaughter for her 18" birthday for use towards her university. Does Emma need to continue contributing to her daughter's education fund for the remaining two years? If so, how much must the monthly amounts be for the remaining 2 years? 6. [5] Emma would like to retire 25 years after her daughter begins university. She would like to have SL.IM in her fund at retirement. If she increases her deposits by 50% once her daughter begins university, will Emma achieve her goal? If there is a shortfall, determine how much; if there is a surplus, determine how much

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