Dennis McDonald has just started working with the NBC as a sales representative and is just trying to catch up on having money for retirement. NBC offers him a pension plan with an annuity that is guaranteed to earn $11\%$ interest compounded annually. He plans to work for $12$ years before retiring and would then like to be able to draw an income of $$110,000$ per annum for $16$ years. How much must be deposited per annum into his retirement fund to accomplish this?

Question $13$Answer

a$.$

$$35,737\mathrm{.}29$

b$.$

$$37,958\mathrm{.}15$

c$.$

$$860,607\mathrm{.}95$

d$.$

$$811,707\mathrm{.}80$