### How much must he deposits if the annual interest rate

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##### Reference no: EM131070934

A man is planning to retire in 25 years. He wishes to deposit a regular amount every three months until he retires, so that, beginning one year following his retirement, he will receive annual payments of \$80,000 for the next 15 years. How much must he deposits if the annual interest rate is 8% compounded quarterly? (Note that the last deposit is made on the date of the end of 25th year, and first withdrawal is at the end of 26th year.) (Justify Answer)

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