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A pension fund for a local government s employees currently makes payouts to beneficiaries of $ 2 , 0 0 0 , 0 0 0

A pension fund for a local governments employees currently makes payouts to beneficiaries of $2,000,000U per year, with those payouts expected to grow with a forecasted inflation rate of 2% per year forever. Compute how much money the pension fund currently needs to have now in order to fully fund that liability (and ensure those payouts to pensioners are made) if it believes it can earn 7.94% per year on its investments. (U=10)

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