You have just graduated from high school and received an award for BDT 100,000. Youre planning to go for masters abroad. Youll join the 4 (four) year Bachelor program in January 2022. You believe youll complete the Bachelor program in 4 years and start the Master program immediately. The master in your subject is a 2 (two) years program. The current monthly tuition fees, accommodation and other costs of the masters program is around BDT 150,000 per month to be paid at the beginning of the month. During the time of admission, youll also need to pay the admission fee, flight fair and shopping which will be a lumpsum of BDT 300,000. The annual inflation is 5%, and it is assumed to remain constant during your Bachelor study period. The rate you can earn on any savings now till you complete Bachelors is 12%. It is expected to increase and offer you 15% on any savings after your Bachelor (i.e.: during Masters study).

Required: a) How much must you have during the start of the masters program to attain study abroad? (7) b) How much must you save each month till you complete bachelor to meet your goal to study abroad? Assume youll deposit the savings in your account at the end of each month.