Sonata will receive $20,000 today (January 1, 2010), and also on each January 1^st for the next five years (2011 2015). Assuming a 5% interest rate, how much must be placed in the fund today to support Sonatas withdrawals?

$________________________

$12,000 has been deposited annually starting on January 1, 2014. If the funds are earning 8% interest, what will the balance be on December 31, 2021?

$________________________