Esther, aged 25, works as a marketing officer in Hong Kong. She provides the following items on her financial situation as on 31 October, 2020.

Monthly take-home salary,	$15,200	Credit card balance,	$23,335
Monthly spending for dining out,	$2,500	Personal loan balance,	$85,000
Monthly spending on clothing,	$1,20.0	Saving account balance,	$15,000
Current value of share investment,	$18,000	Personal loan payment,	$3,400
Purchase price of jewelry,	$19,800	Monthly spending on entertainment,	$5,400
Current value of jewelry, Required:	$8,800	Cash in current account,	$2,800

1. State the general formula for calculating the monthly take-home salary of an employee working in HongKong. (2 marks)

2. Based on the provided information, calculate the net worth and comment on Esther' s financial condition . Showall your workings. (8 marks)

Mike, age 40, is facing an increasing financial responsibility after the birth of his son and daughter, namely Brad and Fanny. He is willing to accept a limited amount of risks.

Mike put CAD25,000 in an education fund account for Fanny on the day when she was born. It pays a 6% interest rate,compounded monthly. Fanny turns to 8 years old today and Mike sets up another 10-year education fund and putsCAD800 per month into a fund that pays 8% interest. Fanny will start her 4-year degree programme at age 18.

The current total tuition fee for Fanny's 4-year degree programme in Canada is CADl 15,000, which reports an average increase of 3% compounding annually.

Required:

1. Risk tolerance can be classified into conservative, moderately cautious, balanced, moderately aggressive and aggressive. Which one best describes Mike? Briefly explain.

(2 marks)

2. Calculate the total accumulated amount in the two education fund accounts when Fanny pursues her degree study in Canada at her age of 18. Show all your workings. (6 marks)

Calculate the estimated total tuition fee for Fanny's 4-year degree study in Canada when sbe reaches the age of 18. Show all your workings.