You are preparing to buy a vacation home five years from now. The home will cost $80,000 at that time. You plan on saving three deposits at an interest rate of 8%:
Deposit 1: Deposit $10,000 today.
Deposit 2: Deposit $12,000 two years from now.
Deposit 3: Deposit $X three years from now.
How much do you need to invest in year 3 to ensure that you have the necessary funds to buy the vacation home at the end of year 5?