Question

Springfield mogul Montgomery​ Burns, age 80​, wants to retire at age 100 in order to steal candy from babies full time. Once Mr. Burns​ retires, he wants to withdraw ​$1.1 billion at the beginning of each year for 6 years from a special offshore account that will pay 23 percent annually. In order to fund his​ retirement, Mr. Burns will make 20 equal​ end-of-the-year deposits in this same special account that will pay 23 percent annually. How much money will Mr. Burns need at age​ 100, and how large of an annual deposit must he make to fund this retirement​ account?

a. How much money will Mr. Burns need when he​ retires? ​$ ​ (Round to three decimal​ places.)

b. How large of an annual deposit must he make to fund this retirement​ account? ​$ ​ (Round to two decimal​ places.)

Answer 1