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This problem is asking for the annual sinking fund deposit needed to accumulate a future amount using compounded interest. The formula for the sinking fund is:

\[
A = \frac{F \cdot i}{(1 + i)^n - 1}
\]

Where:
- $ A $ = Annual sinking fund deposit
- $ F $ = Future value (the amount needed in the future, in this case, \$5,000,000)
- $ i $ = Interest rate per period (annual interest rate compounded annually)
- $ n $ = Number of periods (number of years)

From the problem:
- Future value $ F = 5,000,000 $
- Interest rate $ i = 9\% = 0.09 $
- Number of periods $ n = 20 $

Let's calculate the sinking fund deposit.The annual sinking fund deposit needed to accumulate \$5,000,000 in 20 years, at an interest rate of 9% compounded annually, is approximately \$97,732.38.

Would you like further details or explanations on this? Here are some related questions to explore:

1. How would the deposit change if the interest rate were 8% instead of 9%?
2. What if the state had 25 years instead of 20 to reach the goal?
3. How does monthly compounding affect the required deposit?
4. What is the total amount deposited after 20 years?
5. How much interest is earned after the full period?

**Tip:** The sinking fund method is a systematic way of saving for a future lump-sum payment, useful for long-term goals.

A state has $5,000,000 worth of construction bonds that are due in 20 years. What annual sinking fund deposit is needed at 9% compounded annually? Round the answer to two decimal places.

Learn how to calculate the annual sinking fund deposit required to accumulate $5,000,000 over 20 years at 9% compounded annually. This problem covers key financial math concepts such as compound interest and sinking funds, suitable for advanced high school or undergraduate students.

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