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Springfield mogul Montgomery Burns, age 75, wants to retire at age 90. Once Mr. Burns retires, he wants to withdraw $500M at the beginning of
Springfield mogul Montgomery Burns, age 75, wants to retire at age 90. Once Mr. Burns retires, he wants to withdraw $500M at the beginning of each year for 20 years from a special off-shore account that will pay 18% annually. In order to fund his retirement, Mr. Burns will make a $150M deposit today plus 15 equal end-of-the-year deposits in this same special account that will pay 18% annually. How large of an annual deposit must be made to fund Mr. Burns retirement plans?
(A) $18.93M
(B) $22.34M
(C) $34.45M
(D) $25.67M
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