Joan and Clem Li, approached you recently to talk about how to pay for their children’s education. The Li’s have two chi

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Joan and Clem Li, approached you recently to talk about how topay for their children’s education. The Li’s have two children,Liam and Qi, ages 8 and 4. They expect both of their children topursue postsecondary school when they reach the age of 18. Liamwants to be a mechanical engineer and Qi wants to be a teacher.They heard a radio advertisement recently that the government has aRegistered Education Savings Plan (RESP) that could help them savetoday for the future costs of post-secondary education and wantedto learn more about the program from you. They are mainly concernedabout paying for Liam’s future education currently. (Constructtables where required and show ALL calculations) Specifically, theywant you to answer the following questions: 1. What type of RESPwould you recommend they establish? And why? (5 marks) 2. i. Whatare the annual and lifetime maximum contribution limits? ii. Isthere a maximum age that contributions can be made to a family andnon-family plan? (Provide specifics) iii. Are the contributions taxdeductible? iv. What is the annual maximum in CESG that can bepaid? (8 marks) 3. What amount of money will they need to have atthe start of Liam’s education in 10 years if it currently costs$96,000 for 4 years of university and costs are rising by 3%annually? (Disregard any increases during the term of the program)(5 marks) 4. What monthly amount will the Li’s have to personallysave at the beginning of each month to accumulate the amount neededfor Liam’s education in question #3 assuming they do not set up anRESP? Assume a 7% rate of return. (5 marks) 5. Calculate the sum ofthe annual contributions the couple can make into the RESP in orderto maximize the CESG’s on Liam’s behalf, beginning in 2022 andconcluding in the year he turns 17. (10 marks) – construct table.6. Calculate the total value of the RESP assets on December 31st ofthe year Liam turns 17, using the following assumptions: (12 marks)i. all contributions and corresponding grants are made on January31st of each year, starting the year Liam turns age 8. ii. theannual nominal rate of interest is 7%, compounded annually. iii.there are no withdrawals from the plan