Question 3 A young couple is planning for the tertiary education of their two children. They plan to invest the same amount of money at the end of each of the next 16 years, with the first contribution to be made at the end of this year and the final contribution to be made at the time the first child enters university. The couple plan to invest the annual contributions in securities that earn a return of 8 percent per year from the time of their first contribution till the withdrawal of the last tuition payment for the second child. The first child will begin university study 16 years from today and the second child will begin university study in 18 years from today. The parents anticipate university cost to be $25,000 a year (per child). Thanks to the large endowment funds that the university has, the cost is expected to remain fixed throughout and must be paid at the end of each year. If each child takes four years to complete a university degree, then how much money must the couple save each year? (15 marks)