A very generous grandfather is planning to leave his only granddaughter well off when she reaches the age of 25. He plans to deposit a lump sum now, which is her 2nd birthday, such that she will have enough money to live comfortably without working for a salary. He wants her to receive an amountthat will have the same purchasing power as $2 million today. If he can invest the money and earn an average market interest rate of 8% per year while the inflation rate averages 4% per year, how much must he deposit now?

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