Mr Ma rtin ne e d s to ha ve his ho use pa inte d imme dia te ly. Pa inting the ho use will c o st $1200. If we a ssume the ho use must b e pa inte d e ve ry 5th ye a r (fo re ve r) a nd tha t the c o st o f pa inting will rise b y 3% pe r ye a r d ue to infla tio n (fo re ve r), c a lc ula te the a mo unt o f mo ne y tha t Mr Ma rtin sho uld b e a llo c a ting in a fund no w, to e na b le him to c a rry o ut this pro je c t? [Hint: Use the sum o f infinite ge o me tric se rie s to wo rk o ut the so lutio n] [5 ma rks]