Assumed that a fund can pay dividend steadily for the coming 10 years, which will generate an equivalent return of 5% annually, and the bank charge is negligible.

Peter is thinking of investing $10,000 at the end of each month in this fund for the purpose of using it for the down payment of purchasing a real property in the future.

Ten years later, Peter gets married. Although the fund value has increased a lot and became sufficient for him to pay for the down payment of purchasing a residential property, they still have to borrow $5,000,000 from a bank. They select a 20 years mortgage plan at 3% annual interest rate.

Another several years later, they bear a child. They plan to join an education fund today with a guarantee return of 4% annually. Their target is $580,000 (in today dollar value) to be redeemed at the end of 18^th year. They plan to save $10,000 at the end of each year and increase by $5,000 each year starting from Year 2.

Can their target be achievable? Show detailed steps of your analysis. (Use 4 decimal places of the interest rate factor to do the calculation)

Given the amount of the monthly instalment is $27729.87989.

No more information has given by the question.