nbblglullt'llL 4 U.) PUlile} Please submit both MS'Word and Excel files in Moodle before October 31, 2019, at 7:00 pm. Read the attached article on the proposal 011 a universal pension plan in Hong Kong. Apply what you learn in class about the time value of money, and provide your evaluation and comments to the plan according to the following questions. Your grade for question 4 will NOT depend on any particular conclusion or numbers. However, make sure you can support your claim with reasons and calculations. Write down your analysis in a Word file and show your calculation in an Excel file. Suppose the stated annual interest rate is 6%. For Mike who is age 25 110w and will receive a monthly wage of HK$15,[}[}[} till retirement at age 65, 1. What is the present value (at age 25) of Mike's total contribution to the program and what is the present value (at age 25) of Mike's future total benefit from the pension (suppose he will die at age 85)? Compare these two present values and draw your conclusion. (2 points) 2. Under what annual interest rate that these two present values are equal? (1 point) 3. Repeat the first two exercises for the case that the monthly income increases to HK$25,000. (1 point) 4. To evaluate the value of the pension plan, what do you think are missing in this exercise so far from society's point of view? How do you evaluate those missing components? [2 points)