b. Luke and Monica are proud parents of baby Lily who is 2 years old. They want to send Lily to Presbyterian Ladies College (PLC), a prestigious private girl college, when Lily enters secondary college. They estimate that to fully fund the cost of Lilys secondary education they will need to have $120,000 at the time Lily is 13 years old. They currently

have $10,000 in an education fund for Lily which will be invested at 8% per annum until she reaches 13. They also intend to make monthly contributions into an investment account that pays 12% per annum (i.e 1% per month) with annual compounding. What is the monthly contribution if they were to achieve their saving objective of $120,000 when Lily is 13 years old?