Question 2 (a) The cost of a new car is $32,000, and this price will remain the same for the next 12 years. If the interest rate is 3%, how much would you have to set aside now to be able to buy the car in five years? (b) You have to pay $23,000 a year in school fees at the end of each of the next four years. If the interest rate is 8%, how much do you need to set aside today to cover these bills