Steven plans to retire in exactly 20 years. As his fund manager, your goal is to create a fund that will allow him to receive $200 000 at the end of each year for the 30 years between retirement and death (a psychic told you that he would die exactly 30 years after his retirement). You know that he will be able to earn 11% per year during the 30-year retirement period.

How much would he need to provide today as a single amount to the fund if he can earn only 9% per year compounded annually during the 20 years preceding retirement?

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