Question: Question 5 (11 marks) Andre has $150,000 now, and he wishes to save it aside for his daughter's higher education in five years. He decided

Question 5 (11 marks) Andre has $150,000 now, and he wishes

Question 5 (11 marks) Andre has $150,000 now, and he wishes to save it aside for his daughter's higher education in five years. He decided to invest in a financial instrument that pays him a return of 12.3% annually. Required: a) How much money witi he save after 5 years? (5 marks) ANSWER a): b) Andre also needs $200,000 in seven years for the down payment on a mortgage. If he starts to make a lump sum investment today and can earn 10.5% annually, how much does he need to put in his initial investment? (6 marks) ANSWER b)

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