Your company must make payments of $100,000 each year for 15 years, with the first payment to be made 5 years from today. To prepare for these payments, your company must make 15 equal annual deposits into an account that pays a simple interest rate of 7 percent, daily compounding (360-day year). Funds will remain in the account during both the accumulation period (the first 5 years) and the distribution period (the last 15 years), and the same interest rate will be earned throughout the entire 20 years. The first deposit will be made immediately. How large must each deposit be?
