Question: Dennis McDaniel has just started working with the BCN Ltd . as a sales representative and is just trying to catch up on having money

Dennis McDaniel has just started working with the BCN Ltd

.

as a sales representative and is just trying to catch up on having money for retirement. BCN offers him a pension plan with an annuity that is guaranteed to earn

8 %

interest compounded annually. He plans to work for

20

years before retiring and would then like to be able to draw an income of $

500, 000

per month for

15

years. How much must be deposited per annum into his retirement fund to accomplish this?

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