Burt Sbeez is saving up for his retirement. Today is his 40thbirthday. Burt first started saving when he was just 25 years old.On his 25th birthday, Burt made the first contribution to hisretirement account when he deposited $3,000. Each year on hisbirthday, Burt has contributed another $3,000 to the account. The16th (and last) of these contributions is made today. The accounthas paid interest at the rate of 4.2% APR, compounded monthly. Burtwants to close the account today and immediately move the money toa stock fund which is expected to earn a return of 9%/ year. Burt’splan is to continue making contributions to this account each yearon his birthday. His next contribution will be one year from now(at age 41) and his final planned contribution will be on his 67thbirthday. If Burt wants to accumulate $4,500,000 in his account bythe instant that he reaches age 67, how much must he contributeeach year until age 67 (27 contributions in all) to achieve hisgoal?
