Solution-How much money will Mr. Burns need when he retires

How much money will Mr. Burns need when he retires

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Question - Springfield mogul Montgomery Burns, age 75, wants to retire at age 100 so he can steal candy from babies full time. Once Mr. Burns retires, he wants to withdraw $0.8 billion at the beginning of each year for 7 years from a special offshore account that will pay 23 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 23 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. If the retirement account will pay 23 percent annually, how much money will Mr. Burns need when he retires?

Reference no: EM133143340

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How much money will Mr. Burns need when he retires

Reference no: EM133143340

Reference no: EM133143340

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