Kenneth Clark is saving for an Australian vacation in three years. He estimates that he will need $4,970 to cover his airfare and all other expenses for a week-long holiday in Australia. If he can invest his money in an S&P 500 equity index fund that is expected to earn an average annual return of 11.4 percent over the next three years.
Required:
How much will he have to save every year if he starts saving at the end of this year?
