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 $ 0.9 billion at the beginning of each year for 7 years from a special offshore account that will pay 26 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 26 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? Question content area bottom Part 1 a. If the retirement account will pay 26 percent annually, how much money will Mr. Burns need when he retires? $ enter your response here billion (Round to three decimal places.)
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 $
0.9 billion at the beginning of each year for
7 years from a special offshore account that will pay
26 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
26 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?
Question content area bottom
Part 1
a. If the retirement account will pay
26 percent annually, how much money will Mr. Burns need when he retires?
$
enter your response here
billion (Round to three decimal places.)
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