Mr. Haris, 32 years and Mrs Tini aged 30 years has been married for 5 years now. They have two kids, Arif age 4 and Amira, 1 year. The spouse is planning to send their kids to further their study to a local university after completing tertiary education at the age of 18. Taking into consideration the inflation rate, education cost for the next 14 years is estimated to be amounting RM90,000 which will include the education fee and living expenses for a 4-year study period. This cost will increase at the rate of 2 percent a year onwards. The spouse has taken an insurance policy for both of the kids starting this year. Premium payment for the policy is RM3,360 yearly for Arif and RM3,000 yearly for Amira. This policy will give an expected return of 5.0 percent annually and will mature when the kids reach 18.

1. Calculate the value of the insurance policies for both of the children upon maturity. 

2. How much surplus or deficit the value in (1) as compared to the cost of education for each of the children. 

3. How much yearly the family should invest for each child if it is to be invested in a unit trust fund that will give a 6 percent in return yearly to cover the amount in (2)? 

4. If the family decide to cancel the insurance, how much lump sum money need to be saved today to achieve the education objective for each of the children if it to be invested in the same unit trust fund in (3)?. 

5. If the family plan to achieve the education fund in 8 year, how much rate of return should they look for in the unit trust fund? 

(Draw the timeline in all of your solution)