If he invests the $$3,000$ today, the terminal value of this initial investment in $5$ years $($earning an average $5\%$ return$)$ will be $ Thismeans that he must accumulate the remaining $through his annual savings plan to obtain the full $$25,000$ to cover his expenses for theyear. Still assuming an average return on investment of $5\%,$ the additional yearly investment required to reach Jared's targeted financial goal within $5$ years isTipsSuppose instead that Jared had no capital saved and thus needed to accumulate the entire $$25,000$ in the next $5$ years. In this case, his annual contribution would have to be