Question: ( Future value of a complex annuity ) Springfield mogul Montgomery Burns, age 7 0 , wants to retire at age 1 0 0 so
Future value of a complex annuity Springfield mogul Montgomery Burns, age wants to retire at age so he can steal candy from babies full time. Once Mr Burns retires, he wants to withdraw $ billion at the beginning of each year for years from a special offshore account that will pay percent annually. In order to fund his retirement, Mr Burns will make equal endoftheyear deposits in this same special account that will pay percent annually. How much money will Mr Burns need at age and how large of an annual deposit must he make to fund this retirement account?
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Part
aIf the retirement account will pay percent annually, how much money will Mr Burns need when he retires?
$
enter your response here billionRound to three decimal places.
Part
bHow large of an annual deposit must he make to fund this retirement account?
$
enter your response here millionRound to two decimal places.
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