Springfield Mogul Montgomery Burns, age 75, wants to retire atage 90 so he can steal candy from babies full time. Once Mr. Burnsretires, he wants to withdraw 600 MM at the beginning of each yearfor 20 years from a special off-shore account that will pay 21%annually. In order to fund his retirement, Mr. Burns will make150MM deposit today plus 15 equal end of year deposits in the samespecial account that will pay 21% annually. How large of an annualdeposit must be made to fund Mr. Burns retirement plans?

Answer rating: 100% (QA)

To solve this problem we need to find the annual deposit that Mr Burns needs to make to fund his ret... View the full answer