FINC 3131 – You have two major expenses to take care of in the future

Subject: Business    / Finance
Question
You have two major expenses to take care of in the future: $5,000 three years from now and $20,000 five years from now. How much should you save and put aside today in order to have enough money to exactly take care of those two expenses in the future? Assume that you can invest your savings at the annual rate of 8.5% (annual compounding).