Question 4 a. Your cousin has a two-year old baby girl. Thinking ahead, and realizing the power of compound interest, he is considering investing for his daughter's college education, which will begin in 16 years. Assume that the cost of college education today is $2,000,000; that, there is no inflation, and that there are no taxes levied on interest income that is used to pay college tuition fees and expenses. i If the interest rate is 4%, how much money will your cousin need to put into his savings account today to have $2,000,000 in 16 years? 3 Marks The chance that the price of a college education will be the same 16 years from now as it is today seems unlikely. Assume that the price will rise 3% per year, and that interest rate is 4%, what will your cousin's investment need to be? 6 Marks b. Suggest TWO main personal factors that might lead some investors to emphasize income rather than growth in their investment planning. Explain. 5 Marks Total: (14 Marks)