40marks/10%ofcourseassessmeno Question 1 Mike just has had his 30h birthday and he has just bought an apartment for $3,500,000 To prepare for his retirement, Mike provided his "wish list" to his financial planner: He plans to sponsor his son $5,000,000 to buy an apartment on his 60h birthday. He wants to withdraw an additional $3,000,000 for a round-the-world trip right a his 65th birthday in celebration of his retirement. . He wants to set up a trust fund for his university to award a scholarship of $150,000 annually (last forever) starting from his 70th birthday - He wants to leave $50,000,000 to his wife on his 90th birthday. . He wants to retire on his 65th birthday and estimates that he needs $50,000 every month to support his living after retirement, with the first withdrawal one month after his retirement and the last withdrawal one month before his 90th birthday. The financial planner recommends Mike to open an investment account that earns a return of quarter after his 30th birthday until his 65h birthday (inclusive). He could then transfer all his In addition, he plans to sell his apartment on his 60th birthday, and then deposit all the sale 3.25% per quarter (EQR). Mike will be required to make quarterly deposits starting from money to a safe account that earns an effective monthly rate of 0.4867% (EAR of 6%) proceeds after the deduction of the sponsorship to his son to the investment account. He assumes that the market price of his apartment will grow at an average rate of 3% per year. Required: If Mike makes a quarterly deposit of $9,000 to the investment account, does Mike have enough money to fulfill his retirement plan? By how much? Show your calculations. [Hints: Calculate how much Mike needs at retirement first)