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Farrell wants to retire in six years. To have sufficient assets to fund retirement, Farrell needs to accumulate an additional $400,000 between today and retirement.

Farrell wants to retire in six years. To have sufficient assets to fund retirement, Farrell needs to accumulate an additional $400,000 between today and retirement. As his advisor, you assume that inflation will average 5%. You are also confident that you can build a portfolio that will generate an 8% compounded annual after-tax return. What serial payment should Farrell invest at the end of the first year to fund this goal?

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