Introduction: Peter Pan was born in Hong Kong and is now 28 years old. Peter is currently a nutritionist working at a private nutritional diet centre with a monthly salary of $35,000 (No double pay or bonus). Meanwhile, his monthly personal expenditure is around $18,000. Peter is covered by a group medical insurance policy (basic plan) offered by his employer. Other than that, he does not have any other personal insurance policy on hand. Peter is living with his parents but he will get married very soon. His fiance is an assistant marketing manager working in a listed corporation in Hong Kong with a monthly salary of $30,000 (No double pay or bonus). Peter does not own any property; he wants to buy a second-hand residential property valued at around $7,000,000 and pay a 10% down payment after marriage. As a financial planner for Peter, you have collected his personal information and will conduct an initial assessment of his financial situation. You have drawn up a simple personal balance sheet for him as follows: The following shows the other information or assumptions: 1. Peter plans to retire at 65 years old and his life expectancy is 22 years after retirement. 2. Peter's risk tolerance level is moderate. 3. The long-term average inflation rate in Hong Kong is estimated to be 3% per annum. 4. The normal rate of return on investment is projected to be 4% per annum. 5. Assume the prime rate in Hong Kong is 5% per annum. 1) i) Peter is also interested in knowing more about retirement plans/products. He learned from the TV advertisement that annuity plan is suitable for people preparing for retirement. As a financial planner for Peter, explain to him the difference between deferred annuity and immediate annuity, and which one is more suitable for him. (5 marks) ii) Peter would also like to know more about the reverse mortgage programme. Referring to the following information, you are required to calculate the amount of monthly payout that Peter will have if he (the only applicant) joins the reverse mortgage programme. (2 marks) - He will join the programme when he retires (i.e. 65 years old). - The appraised value of his property will be HK $10,000,000 when he retires. - He will choose the floating rate as his reverse mortgage's interest rate option. The floating rate is projected to be the same as now. No lump-sum payout amount is needed. The payment term will be 20 years