A retirement home in Florida costs $$200,000$ today. Housing prices in Florida are increasing at a rate of $4\%$ per year. Joe wants to buy the home in $8$ years when he retires. Joe has $$25,000$ right now in a savings account paying $8\%$ interest per year. Joe wants to make eight equal annual deposits into the savings account starting today. How much must each deposit be so Joe will have enough money in his savings account to buy the retirement home when he retires?

Answer rating: 100% (QA)

To determine how much Joe must deposit annually into his savings account in order to have enough mon... View the full answer