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A robot advisor provides a retirement plan: if an investor invests in this product today, it will start paying out annually in perpetuity in eleven
A robot advisor provides a retirement plan: if an investor invests in this product today, it will start paying out annually in perpetuity in eleven years. The funds will grow at an APR of 8%, compounded quarterly, for the foreseeable future. Mr. Smith wants to buy this product as his retirement plan. He hopes that the payout can cover his expected annual expenditure of $20,000. How much money should he save today?
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