Assume the interest rate is 5%. How much would Shin need to set aside to

provide each of the following?

a) $1 million at the end of each year in perpetuity.

b) A perpetuity that pays $1 million at the end of the first year and that grows at 3% a

year.

c) $1 million at the end of each year for 10 years.

d) Shin must pay $18,000 a year in school fees at the end of each of the next five years.