Your small business requires an IT upgrade which will cost $200,000 in 4 years. As of today, you have allocated $24,000 towards this upgrade, which is currently sitting in an investment account that earns 8% interest.

(a) If you do not make any additional deposits into this investment account, how much cash will you need at the time of the upgrade? (aka. How short of $200,000 will the account be?)

(b) Instead of coming up with cash at the time of the IT upgrade, you want to set some money aside each year by making 4 annual deposits over the next 4 years into a second investment account that earns 9.5% interest. How much should you deposit each year for the next 4 years so that you would have $200,000 in 4 years? Include the original investment from part (a)