Question: You plan to buy some property in Florida five years from today. To do this, you estimate that you will need $20,000 at that time.

You plan to buy some property in Florida five years from today. To do this, you estimate that you will need $20,000 at that time. You would like to accumulate these funds by making equal annual deposits in your savings account, which pays 12 percent annually. If you make your first deposit at the end of this year, and you would like your account to reach $20,000 when the final deposit is made, how much will you have to deposit in the account annually?

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