Exercise G-7

Sara has just graduated from college. She has determined that to purchase a home in 8 years she needs to accumulate $23,000 for a down payment. If Sara can earn 5% per year on her savings, what is the amount of the annual annuity payment that Sara must make at the end of each year for 8 years?

Amount of the annual annuity payment: $ __________

(For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, e.g. 25.25.)