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After attending a financial planner seminar, Leo is very concern about whether he can afford his son to study a 6 year medical course in

After attending a financial planner seminar, Leo is very concern about whether he can
afford his son to study a 6 year medical course in the US university at the age of 18. His
son is now 5 year old. The current medical course at the unviresity is divided into 2 parts:
Primary level (Year1 to Year 3) AND SENIOR LEVEL (Year 4 to Year6). Currently, the school
fee for primary level is $60,000 per year and the school fee for senior level is $82,000 per
year. In addition, the university cost is expected to increase at 3% per year.
Assume that the education expenses are withdrawn at the beginning of each year and
Leo starts saving now with an equity unit trust fund of 5% annual rate of return and he
wants the education fund to be ready when his son first day starts the university study.
(Round up all answers to 2 decimal places)
a) What is the required annual school fee at the time when Leos son starts studying at
primary level when reaches the age of 18? @3
b) What is the required annual school fee at the time when Leos son starts studying at
senior level when reaches the age of 21? @3
c) What is the amount of the education fund required for the first three years at the
beginning of age 18? @6
d) What is the amount of the education fund required for the last three years at the
beginning of age 21? @6
e) What is the total amount of the education fund required for all 6 years when Leos
starts studying at the university? @3
f) How much must Leos deposit at the beginning of each year in order to accumulate
sufficient amount of money to pay for his sons education requirement? @7

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