A

B

(Future value of an annuity) In 8 years, you are planning on retiring and buying a house in Oviedo, Florida. The house you are looking at currently costs $130,000 and is expected to increase in value each year at a rate of 6 percent. Assuming you can earn 8 percent annually on your investments, how much must you invest at the end of each of the next 8 years to be able to buy your dream home when you retire? CTC a. If the house you are looking at currently costs $130,000 and is expected to increase in value each year at a rate of 6 percent, what will the value of the house be when you retire in 8 years? (Round to the nearest cent.) (Compounding using a calculator and annuities due) Springfield mogul Montgomery Burns, age 90, wants to retire at age 100 in order to steal candy from babies full time. Once Mr. Burns retires, he wants to withdraw $1.2 billion at the beginning of each year for 9 years from a special offshore account that will pay 23 percent annually. In order to fund his retirement, Mr. Burns will make 10 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. How much money will Mr. Burns need when he retires? billion (Round to three decimal places.)