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An employee's compensation includes an annuity that pays $70,000 at retirement, with each subsequent annual payment growing by 4% for a total of 7 payments
An employee's compensation includes an annuity that pays $70,000 at retirement, with each subsequent annual payment growing by 4% for a total of 7 payments overall. The firms policy is to pre-fund such annuities before retirement. At an interest rate of 6%, how much would the firm need to invest 2 years before retirement?
Please round your answer to the nearest hundredth.
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