Question $3(28$ marks$)$

After attending a financial planner seminar, Leo is very concern about whether he can

afford his son to study a $6$ year medical course in the US university at the age of $18.$ His

son is now $5$ year old. The current medical course at the unviresity is divided into $2$ parts:

Primary level $($Year$1$ to Year $3)$ AND SENIOR LEVEL $($Year $4$ to Year$6).$ Currently, the school

fee for primary level is $$60,000$ per year and the school fee for senior level is $$82,000$ per

year. In addition, the university cost is expected to increase at $3\%$ per year.

Assume that the education expenses are withdrawn at the beginning of each year and

Leo starts saving now with an equity unit trust fund of $5\%$ annual rate of return and he

wants the education fund to be ready when his son first day starts the university study.

$($Round up all answers to $2$ decimal places$)$

a$)$ What is the required annual school fee at the time when Leo$$s son starts studying at

primary level when reaches the age of $18?$ @$3$

b$)$ What is the required annual school fee at the time when Leo$$s son starts studying at

senior level when reaches the age of $21?$ @$3$

c$)$ What is the amount of the education fund required for the first three years at the

beginning of age $18?$ @$6$

d$)$ What is the amount of the education fund required for the last three years at the

beginning of age $21?$ @$6$

e$)$ What is the total amount of the education fund required for all $6$ years when Leo$$s

starts studying at the university? @$3$

f$)$ How much must Leo$$s deposit at the beginning of each year in order to accumulate

sufficient amount of money to pay for his son$$s education requirement? @$7$