Question: You plan to begin depositing equal amounts into a new savings account each year for the next 14 years. You make your first deposit today.

You plan to begin depositing equal amounts into a new savings account each year for the next 14 years. You make your first deposit today. Assume no withdrawals and only these 14 deposits will be made to your account. If the interest rate you will earn is 2.5% and you want the balance of your account to be exactly $60,000 at the end of 14 years.

How much will you need to deposit each year?

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