Your cousin just had a baby and is seeking you help as she plans to save for the babys post-secondary education. Based on articles she has read, she anticipates the annual cost for university to be $15,000 plus living expenses in 18 years. We will assume that these costs are paid at the start of each school year in September. She expects her education fund investments to average a return of 0.7% monthly.

Required:

a) How much will she need to have saved to fund four years of these annual costs?

b) Your cousin anticipates that the living costs while at university will be $2000 per month. How much will she need to have saved to fund forty-eight (48) months of these living costs, assuming the first withdrawal is made at the first day of September?

c) An aunt has started a savings fund for the child investing $200 per month at the end of each month for the next 18 years, or 216 months. How much will be saved for the child by the time they are ready to enter university in 18 years, assuming that the rate of return is 0.7% monthly?