2. [Class 10 - 10 Points] The Smith family is planning for their daughters education. She just turned 5 years old and will be 18 when she starts university. They are planning to make monthly deposits of $300 into an RESP (Registered Educational Savings Program). Deposits are made at the end of each month. They anticipate that they can earn a return of 4.8% APR compounded monthly on their RESP. When their daughter starts university, she will withdraw $20,000 to pay for her 1st year. The balance will be paid out at the end of each year (end of 1st, end of 2nd and end of 3rd) in equal amounts to pay for the subsequent years. During those 3 years the Smiths hope that the account will earn 6% APR compounded annually.

   1. Draw the timeline for the Smith family planning for their daughters education over 16 years.

   2. Calculate how much their daughter can expect to withdraw each year?