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A man wants to ensure an inflation-adjusted income for 25 years of $100 per monthfor the first year, increasing 5% each year for the next

A man wants to ensure an inflation-adjusted income for 25 years of $100 per monthfor the first year, increasing 5% each year for the next 24 years, but starting in 15 years' time. All the payments will be made at the beginning of each month. He can invest in a deferred annuity at a nominal rate of 7% converted quarterly. What is the present value of his total investment?

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