(Compounding using a calculator and annuities due) Springfield mogul Montgomery Burns, age 75, wants to...
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(Compounding using a calculator and annuities due) Springfield mogul Montgomery Burns, age 75, wants to retire at age 100 in order to steal candy from babies full time. Once Mr. Burns retires, he wants to withdraw $1 billion at the beginning of each year for 9 years from a special offshore account that will pay 19 percent annually. In order to fund his retirement, Mr. Burns will make 25 equal end-of-the-year deposits in this same special account that will pay 19 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?
b. How large of an annual deposit must he make to fund this retirement account?
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