Employer is offering to pay your signing bonus in one of two formats.

The first option is the amount of $4900 in 7 years. The second option is to receive the amount of $1200 immediately followed by some unknown annuity that is paid at the end of each year for 7 years with the first annuity payment received at the end of year 1. Using an interest rate of 5.00%, determine the unknown annuity amount for the second option that would make the present value of both options equivalent.