Mr. D is a social worker. He lives with his wife in a village in New Territories. He has an outstanding fixed mortgage payment of $15,000 per month for 5 years. The interest rate is fixed at 5% p.a. He wishes to advance his mortgage payment by two years by paying a lump sum. Mr. and Mrs. D have a 10-year old daughter. They wish to send her daughter to a UK university for 4-year study in 8 years' time. It is expected to cost $250,000 for every 6-month in present value terms. He intends to make an initial contribution of $800,000. After that, he believes he can make $3,000 regular contribution for every 6-month (starting at t=0.5 ) while he is paying the mortgage. This contribution is expected to grow with an inflation rate of 3%. After repayment his mortgage in 3 years' time, he believes he believes he can make an extra contribution of $7,500 per month (or $45,000 for every 6month (starting at t=3.5 ). Again, this contribution is expected to grow with inflation rate. a. Assume there are no extra interest and handling charges, what will be the amount he needs to repay the bank if he wants to repay all his mortgage by 2 years? (6 marks) Hints: PVA Aordinary=rc(1(1+r)t1) where c,r and t are periodic payment, periodic interest rate and number of periods respectively. It is PVAOntinary that a mortgagor owes to 2/8 ank at any time. b. Estimate Mr. D's daughter education expenses at t=8,8.5,, and 11.5. (4 marks) c. Estimate Mr. D regular contributions while he is still payment the mortgage at t=0.5,1, and 3. (3 marks) 1. Estimate Mr. D regular contributions while he has fully paid the mortgage at t=3.5,4, and 11.5