1. A client is celebrating his 50th birthday today and wants to start saving for his anticipated retirement at age 65. He wants to be able to withdraw $20,000 from his savings account on his 66th birthday and each year for 19 more years after that. After extensive research, the client determines that he can invest his money in an account that offers 5% interest per year with quarterly compounding. He wants to make equal annual payments on each birthday into the account--the first payment on his 51st birthday and the last on his 65th birthday.
In addition, the client's employer will contribute $2,000 to the account each year (beginning on the client's 51st birthday) as part of the company's profit-sharing plan (a total of 15 contributions). The amount the client must deposit personally into the account each year on his birthday to enable him to make the desired withdrawals at retirement is closest to: