You need to save up to purchase a new computer in three years and plan to make annual deposits into your savings account which earns 3% interest. If the computer costs $1,200, how much should you deposit each year to reach your goal?

The Billy Corporation obtained a $34,000 loan to purchase various machines for its farm. The loan has a four-year term, an interest rate of 2% and requires annual payments on the loan. What is the total amount of interest that the company will pay on the loan?