Meg's pension plan is an annuity with a guaranteed return of 3% per year (compounded quarterly). She would like to retire with a pension of $30,000 per quarter for 5 years. If she works 25 years before retiring, how much money must she and her employer deposit each quarter? (Round your answer to the nearest cent.)

$4352.08

To determine how much money Meg and her employer must deposit each quarter, we can use the formula for calculating the future value of an annuity:

\[ FV = P \times \left(\frac{(1 + r/n)^{nt} - 1}{r/n}\right) \]

Where:
- FV is the future value (the desired pension amount)
- P is the periodic payment (the amount to be deposited each quarter)
- r is the interest rate per period (3%)
- n is the number of compounding periods per year (4 since it's compounded quarterly)
- t is the number of years (5)

First, let's convert the pension amount per quarter to an annual basis:
\[ Annual Pension = $30,000 \times 4 = $120,000 \]

Now, we can plug the values into the formula and solve for P:
\[ FV = P \times \left(\frac{(1 + 0.03/4)^{4 \times 5} - 1}{0.03/4}\right) \]

Simplifying the formula:
\[ $120,000 = P \times \left(\frac{1.0075^{20} - 1}{0.0075}\right) \]

We can solve this equation for P using algebra or a financial calculator. The result is approximately $2,227.21.

Therefore, Meg and her employer must deposit approximately $2,227.21 each quarter to ensure a pension of $30,000 per quarter for 5 years.