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On January 1, Alan King decided to transfer an amount from his checking account into an investment account that later will provide $ 80,000 to send his son to college (four years from now). The investment account will earn 8 percent, which will be added to the fund each year- end.
Required (show computations and round to the nearest dollar):
1. How much must Alan deposit on January 1?
2. What is the interest for the four years?
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