Sheila expects that her daughter will start college 5 years from now. She expects the tuition and other expenses for the first year to be $10,000. She expects these costs to increase by 3% annually.

She expects that her daughter will finish college in 4 years. She has set aside $7,000 already in a bank account for the college expenses.

If she can earn 10% on her money, what should her annual savings be over the next 5 years in order to meet her daughter's college expenses fully?

(The first of the 5 deposits is made one year from now. All college expenses have to be paid at the beginning of the academic year.)