Case Study 1 (10 Marks): Markus Steven is planning his daughter's university education. His daughter is...

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Case Study 1 (10 Marks): Markus Steven is planning his daughter's university education. His daughter is 13 years old and will go the university when she is 18 years old. Markus is relived that he has enough time to arrange for her university expenses. She intends to enrol in a Honours Bachelor of Business (HBBA) of Cambrian, which is a four year degree program. The annual fee is $7563 per year. Markus believes this may go up by 1% per year. The average expense on boarding and lodging currently is $18000 per year that he believes will be going up due to inflation every year. The long-term average inflation is expected to be 4.50% per year for next 10 years. He wants to start saving so that she has enough money for all the fours years at the time of starting her HBBA program. He realises that she has $17500 in her bank account that was gifted to her by her grandfather and bank is paying her interest of 6% on that deposit that she will use for financing her studies. It is also expected that she will be working part time during her studies and will be able to earn equal to 50% of boarding and lodging expenses. Markus must fund the rest of tuition boarding and lodging expenses. He starts saving from today itself. His bank has an annual saving plan that provides an interest rate of 7.5%. He would like to make six equal instalments starting today so that he can give her daughter a lumpsum equal to the total she needs to complete her degree. Please note that the lumpsum will be deposited to her account that earns 6% interest rate. She will withdraw amount equal to the annual fee of that year and the money required for boarding and lodging for that year, at the beginning of each of the 4 years of degree program in such a way that the money left in the bank after four years will be zero. Question 1- Please calculate the amount of six annual instalments Markus has to deposit to ensure she has enough money as specified in the case. Question 2- Show calculations how she will use that money every year so that she is left with zero after she finishes her HBBA. Case Study 1 (10 Marks): Markus Steven is planning his daughter's university education. His daughter is 13 years old and will go the university when she is 18 years old. Markus is relived that he has enough time to arrange for her university expenses. She intends to enrol in a Honours Bachelor of Business (HBBA) of Cambrian, which is a four year degree program. The annual fee is $7563 per year. Markus believes this may go up by 1% per year. The average expense on boarding and lodging currently is $18000 per year that he believes will be going up due to inflation every year. The long-term average inflation is expected to be 4.50% per year for next 10 years. He wants to start saving so that she has enough money for all the fours years at the time of starting her HBBA program. He realises that she has $17500 in her bank account that was gifted to her by her grandfather and bank is paying her interest of 6% on that deposit that she will use for financing her studies. It is also expected that she will be working part time during her studies and will be able to earn equal to 50% of boarding and lodging expenses. Markus must fund the rest of tuition boarding and lodging expenses. He starts saving from today itself. His bank has an annual saving plan that provides an interest rate of 7.5%. He would like to make six equal instalments starting today so that he can give her daughter a lumpsum equal to the total she needs to complete her degree. Please note that the lumpsum will be deposited to her account that earns 6% interest rate. She will withdraw amount equal to the annual fee of that year and the money required for boarding and lodging for that year, at the beginning of each of the 4 years of degree program in such a way that the money left in the bank after four years will be zero. Question 1- Please calculate the amount of six annual instalments Markus has to deposit to ensure she has enough money as specified in the case. Question 2- Show calculations how she will use that money every year so that she is left with zero after she finishes her HBBA.