Sarah is interested in saving money for her first apartment. She currently has $10,000 saved from working part-time at University. Now that she has graduated, Sarah's plan is to make regular deposits into a non-registered brokerage account which will earn 8% p.a. after tax. Her new job earns her an after-tax salary of $50,000 per year and Sarah will deposit 10% of her salary at the end of each year. Her after-tax salary is expected to increase each year at 4% p.a. The deposit she needs for her apartment is currently $120,000. However, apartment prices in her neighborhood are increasing at 5% p.a.

1. How much will Sarah have saved for a house 6 years from now?
2. How much deposit will Sarah need for a deposit on her house 6 years from now? Will she meet her goal?
3. Sarah's parents will help her save for her house by matching her contributions 1 for 1 (e.g. give 1 dollar for every 1 dollar she saves). What percentage of her after-tax salary should Sarah save to reach have a deposit for her house in 6 years? (In this question, the parents will be contributing their savings at the same time as Sarah does (and not at the end). Thus, both Sarah and her parents will make contributions on an annual basis.