Question: Rockness needs $40,000 to pay off a loan due on December 31, 2016. His plans included the making of 10 annual deposits beginning on December

Rockness needs $40,000 to pay off a loan due on December 31, 2016. His plans included the making of 10 annual deposits beginning on December 31, 2007 in accumulating a fund to pay off the loan. Without making a precise calculation, Rockness made three annual deposits of $4,000 each on December 31, 2007, 2008, and 2009, which have been earning interest at 10% compounded annually.

Required

What is the equal amount of each of the next seven deposits for the period December 31, 2010 to December 31, 2016 to reach the fund objective, assuming that the fund will continue to earn interest at 10% compounded annually?

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