1. Today is 1 January 2018. Mary is 40 years old today and she is...
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1. Today is 1 January 2018. Mary is 40 years old today and she is planning to set up a university education fund for her 12 year old daughter Emily. The fund should be enough to cover Emily's university tuition fee costs (35 marks) a 18 marks] Assume that Emily will attend university at age 18 to complete a three-year bachelor degree. Mary estimates that current average university tuition fees are $25,000 per person per year and are growing at a rate of 3% p.a. (e.g., the estimated tuition fee for 2019 is $25,000 (1 + 3%)). Find Emily's first year, second and third year tuition fee amount. Calculate the amount that Mary needs to deposit into the fund today. Assume the fund yield rate is J1 = 3.6% p.a. and the tuition fee is paid on an annual basis at the beginning of each study year. Round your answer to three decimal places
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