Question 1 Jennifer's parents decide to deposit $6,000 in a savings account over the next 10 years to pay for Jennifer's future college Jennifer's future college expenses. The balance in the savings account earns 8% per year. After 10 years, Jennifer plans to attend a four-year university program at University. Jennifer's parents will need to withdraw $25,000 per year to pay for Jennifer's university expenses. Consider the following scenarios: Scenario 1: All deposits/payments are made at the beginning of the year. Annual deposits and withdrawals do not vary with the year. Question 1.1 Are the annual deposits sufficient to pay the university fees? What is the difference between the annual deposits required to pay university fees and Jennifer's parents' annual deposits? Scenario 2: All deposits/payments are made at the end of the year. Jennifer's parents' initial deposit is $8,000. Each subsequent year, Jennifer's parents deposit 5% more than the previous year. The initial payment for university fees is $25,000. In each subsequent year, the university fees increase by 4% over the previous year. previous year. Question 1.2 Are the annual deposits sufficient to pay the university fees? If yes, what is the surplus? If not, what is the difference? Question 1.3 At what rate of deposit increase (currently the rate is 5%) will Jennifer's parents save just enough money to pay for Jennifer's university expenses? Scenario 3: All deposits/payments are made at the end of the year. Jennifer's parents' initial deposit is $8,000. Each subsequent year, Jennifer's parents deposit 5% more than the previous year. The initial payment for university fees is $30,000. In each subsequent year, the university fees increase by 4% over the previous year. previous year. Jennifer receives a scholarship. The scholarship is worth $2,000 per year (for Jennifer's four years of college). Jennifer's parents decide to continue their annual deposits during Jennifer's four academic years.