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A racehorse breeder wants to set up a perpetual prize for a racing event in his name. The first race will be run and the

A racehorse breeder wants to set up a perpetual prize for a racing event in his name. The first race will be run and the first prize will be paid two years from now when he retires. The fund is established immediately and will earn an effective rate of 4.0% per annum. The annual prize will be $262183. How much should he deposit into the fund? Give you answer correct to the nearest cent.

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