If he invests the $5,000 today, the terminal value of this initial investment in 10 years (earning an average 8% return) will be $ . This means that he must accumulate the remaining $ through his annual savings plan to obtain the full $150,000 for the down payment. Still assuming an average return on investment of 8%, the additional yearly investment required to reach Manuel's targeted financial goal within 10 years is . Suppose instead that Manuel had no capital saved and thus needed to accumulate the entire $150,000 in the next 10 years. In this case, his annual contribution would have to be . When Manuel starts with an initial investment of $5,000, the total amount that he ends up contributing to accumulate $150,000 is equal to the initial investment plus the additional yearly payments, for a total of . When he starts with no initial capital contribution, the amount he ends up contributing is equal to the sum of all annual contributions you calculated in the no-initial-capital scenario, for a total of . Once Manuel has determined the annual amount he needs to save, the next step toward achieving his goal is coming up with an investment plan