Question Four

Caulfield mogul Monty Buxton, age 30, would like to retire at age 60. Once Mr. Buxton retires, he wants to withdraw $1 billion at the beginning of each year for 9 years from a special offshore account which will pay 25% annually.

In order to fund his retirement, Mr. Buxton will make 30 equal end-of-the-year deposits in this same special account which will pay 25% annually.

How much money will Mr. Buxton need at age 60, and how large of an annual deposit must he make to fund this retirement account?

works needed.