Discuss the below in detail:
Q: Peter and Ann Gibson want to save enough money so that in five years they can purchase a cleaning service franchise. How much will they need to save each year if the franchise fee is $19,500 and startup costs are $15,200? (Do not consider interest earned on savings when calculating your answer.) If the company earns $24,700 in profits the first year, and the royalty fee is 6 percent, how much will the Gonzales' first royalty payment be?