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An employee's compensation includes an annuity that pays $100,000 at retirement, with each subsequent annual payment growing by 5% for a total of 6 payments
An employee's compensation includes an annuity that pays $100,000 at retirement, with each subsequent annual payment growing by 5% for a total of 6 payments overall. The firms policy is to pre-fund such annuities before retirement. At an interest rate of 8%, how much would the firm need to invest 3 years before retirement? Please round your answer to the nearest hundredth.
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