1. John Smith (Janes brother) thinks this is a good idea but MUST have the new 1980 Mustang II now. He begins his savings program once he completed paying for his car 5 years later and saves the same amount annually at the same rate (8%) but in lieu of stopping after the 12 year he continue until he has caught up with his sister. When will he catch up and how much annual savings does he need to contribute?