present value

present value

You are twenty five years old. Starting on your 40th birthday you want to take a vacation costing $3,000, every year for five years. How much, in equal amounts,
should you save each birthday, on the next 3 birthdays (i.e., the first saving is on the twenty-sixth birthday and the last on the twenty eighth birthday) to be
able to take the vacations, if the interest rate is 6% a year, compounded annually?

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