Peter Van Dusen opened a trust account to fund his son's education. The account paid 10.25% compounded quarterly. His son is expected to require four years of quarterly payments of $2,000 with the first payment occurring 10 years 3 months from today . How much must Mr. Van Dusen deposit now so that his son will be able to receive the 4 years of payments? This is an example of a deferred annuity.

 

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