Jamilah plans to further her doctorate study six years from now. Her study will take four years to be completed. Currently, the fee is RM8,500 per year. It is expected that by the time Jamilah enroll as a student, the annual fee is going to increase to RM10,000 per year.

a) Draw a time line to indicate when the payments are supposed to be made(2 marks)

B)Calculate the present value of all annual fees given that the opportunity cost is 8 percent.(4 marks)

C)Assuming she plans to save for the first six years with a saving rate of 5 percent, how much should she deposit each year starting one year from today, so that she will be able to pay the fees? ( 4 marks)