Martin is looking for an investment which will mature in five years and plans to use the amount to finance his daughters university education. He estimates he will need $500,000 in expenses at that time for his daughters education expenses. His financial advisor presents him with a 5- year structured deposit A. It will earn 1% per annum for the first two years, stepping up to 2% in the 3rd year and 3% in the last 2 years.

d) investment, D, which is structured to mature with a value of $500,000 at the end of five years and has no interim cash flows, earns 0.45% every quarter. What is the deposit needed and is this better than structured deposit A? Support your conclusion with appropriate calculations. (5 marks)