n=6

Question 2 (15 marks) a) Jennifer is a single mother. She intends to set up an education fund for her daughter's university study in Hong Kong. Her daughter is now a secondary school student. To pay for the future fees and expenses in university, she will need $48,000 four years later, S49,500 five years later, $55,440 six years later, and $63,500 seven years later. If Jennifer can put money into a fund that pays 5% interest, what lump-sum deposit must she place in the fund today in order to meet her daughter's college funding in future? Use TVM table(s) (Refer to Centralized Moodle - Topic 2 Formulas and Tables) and show ALL calculation steps. Round your final answer to 2 decimal places. (7 marks) b) You borrow a ten-year loan of $1,500,000. The annual interest rate is 13% that to be repaid every 2 weeks. Assume 52 weeks a year. Follow the format of EXCEL spreadsheet in the lecture note (slide number: 1-22). List the numerical answers and EXCEL formulas of payment, interest, principal paid and end balance of n" periodic payment as stated below. Last digit of your student number " periodic payment 110 115 2 120 125 130 5 135 140 7 145 8 150 155 0 1 3 4 6 9 For example, if your student number is 1924528ZA, then your answer table will be as below. Period Payment Interest Principal End Balance 145 Numerical Answer Numerical Answer Numerical Answer Numerical Answer EXCEL Formula EXCEL Formula EXCEL Formula EXCEL Formula Points to note: You should state the EXCEL Formula in relevant figures (i.e. 0.08) rather than a cell (i.c. B4) unless you make references with a remark [i.e. B4-0,08] at the bottom of your answer table. [i.c. -FV(B4..........Remark: B4-0.08). Round ALL numerical answers to 2 decimal places. (8 marks) END of Assignment 1