Marlene is 29 years old, and would like to save a deposit to buy her first home in Samilan by the age of 36. The average house price in this area is expected to be $380,000, with a recommended deposit of 20% when financing a purchase. Assuming that property prices are not expected to grow in the medium term, how much money will she need to put into her bank account per year over the next 7 years to afford the recommended deposit and stamp duty for an average house in Samilan?

Assume that she currently has a bank account balance of $57,000, savings account interest rates will remain stable at 2.0%, and interest is compounded daily. Assume an additional Stamp duty cost of 4% of the property value upon purchase. Stamp duty in this case must be paid for with her own savings and cannot be borrowed. 4 Marks

If Marlene is successful in her loan application in 7 years' time, calculate her annual loan repayments if the loan term is 25 years and the annual variable home loan interest rate is 5% p.a. compounded daily. 3 Marks

Assume that Marlene finds the repayments in part b) too excessive before signing her application and can only afford to pay $7,000 per year. How much could she borrow, given her lower budget, and what is the maximum value of the home she can afford (including stamp duty), given the deposit and stamp duty provision she has saved from part a)?. Again, assume an annual variable interest rate of 5% p.a. and daily compounding for 25 years. 2 Marks

Assume that in the future, Marlene would like to use $2,000,000 from her dancing career to build a studio. It will take exactly 1 year to build. Net income is expected to be $50,000 per year at the end of years 2 to 10. Net income will increase to $55,000 per year at the end of years 11 to 20. Marlene would like to sell this property at the end of the 20th year. The property value of $2,000,000 is expected to grow by 3% per year from the time it is built. If Marlene has a discount rate of 7%, calculate the Net Present Value (NPV) and explain whether this investment is suitable for her. Ignore stamp duty and applicable tax deductions.