James and his wife would like to retire in 23 years. Upon retirement they want to spend the first 10 years traveling around the world. To travel in the style they are accustomed they will require $65,000 in each of the 10 years. Their first payment of $65,000 will be 23 years from today and there will be 10 total yearly payments of $65,000. After the years of traveling they then want to live in a small retirement village in Charleston. For living expenses they would like to receive yearly income of $50,000 per year in each of the next 25 years after they finish traveling (a total of 25 yearly $50,000 payments with their first payment beginning the year after their quit traveling).

In order to save up for these expenses, assume that Jamed and his wife plan to deposit the same amount of money for the next 15 years (with the first deposit being one year from today) in an account paying 9% interest compounded annually (they don’t want to be burdened with saving money the last few years before they retire). Calculate the amount of their annual deposits so that when they receive their last $50,000 payment there will be a zero balance in the account.