Xander Schauffele wishes to save money to provide for his retirement in 27 years. Beginning one month from now, he will begin depositing a fixed amount each month for the next 27 years into a retirement savings account that will earn 6% compounded monthly. Then, one year after making his final deposit, he will want to withdraw $80,800 annually for 16 years for his retirement. The fund will continue to earn 6% compounded monthly. How much should his monthly deposits be so that he will have enough money to purchase the annuity that pays $80,800 a year for 16 years when he retires?

Answer choices:

1. $3,990.12
2. $1,000.85
3. $2,491.45
4. $1,050.89

Can you explain what to plug in a financial calculator to solve this?