A retirement home at deer trail estates now costs 185000, Ask an Expert

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A retirement home at Deer Trail Estates now costs $185,000. Inflation is expected to cause this price to increase at 6% per year over the 20 years before C. L. Donovan retires. How large an equal, annual, end-of-year deposit must be made each year into an account paying an annual interest rate of 10% for Donovan to have the cash needed to purchase a home at retirement?

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