Mr. Moore is 35 years old today and wants to set aside an equal amount at the end of each of the next 25 years so that he can retire at age 60. He expects to live to the maximum ageof 80 and wants to be able to withdraw $25,000 per year from the account on his 61st through 80th birthdays. The account is expected to earn 10% p.a. for the entire period.

What must be the balance in the account after 25 years in order for Mr. Moore toachieve his retirement objective?