Annual deposit must he make to fund this retirement account

Assignment Help Financial Accounting

Reference no: EM131219150

(Future Value of a Complex annunity) Springfield mogul Montgomery Burns, age 70, wants to retire at 100 so he can steal candy from babies full time. Once Mr. Burns retires, he wants to withdraw $1.1 billion at the beginning of each year for 8 years from a special offshore account that will pay 24 percent annually. In order to fund his retirement, Mr. Burns will make 30 equal end-of-the-year deposits in this same special account that will pay 24 percent annually. How much money will Mr. Burns need at age 100, and how large of an annual deposit must he make to fund his retirement account? a. If the retirement account will pay 24 percent annually, how much money will Mr. Burns need when he retires? Answer: $____ billion (round to three decimal places) b. How large of an annual deposit must he make to fund this retirement account? Answer: $____ million (Round to two decimal places)

Reference no: EM131219150

Questions Cloud

Auditors internal control report on a public company : How does a summary of possible adjustments help the auditor determine whether the financial statements are fairly presented? What information might it contain? How might an analysis of the summary affect the auditor's internal control report on a pub..

Considered to be a long-term available-for-sale security : The following data, presented in alphabetical order, are taken from the records of Nieto Corporation. The investment in Sasse common stock is considered to be a long-term available-for-sale security.

Confront serious information-related security threats : CPAs must confront serious information-related security threats, from fraud and cyber crimes to the loss or theft of laptops, mobile phones, and client or organizational data. CPAs should work with clients to assess and mitigate current and emerging ..

Prepare the closing entries : This is a partial adjusted trial balance of Barone Company. BARONE COMPANY Adjusted Trial Balance January 31, 2014 Debit Credit Supplies $ 906 Prepaid Insurance 1,536 Salaries and Wages Payable $1,049 Unearned Service Revenue 861 Supplies Expense 817..

Annual deposit must he make to fund this retirement account : (Future Value of a Complex annunity) Springfield mogul Montgomery Burns, age 70, wants to retire at 100 so he can steal candy from babies full time. Once Mr. Burns retires, he wants to withdraw $1.1 billion at the beginning of each year for 8 years f..

Define managerial accounting : Define managerial accounting. Describe the role of managerial accounting and the management accountant in a business or organization. Describes ethical issues/concerns for the management accountant.

What are the expected dividend growth rates for each firm : Here are data on two stocks, both of which have discount rates of 15 percent: What are the dividend payout ratios for each firm? What are the expected dividend growth rates for each firm? What is the proper stock price for each firm?

What is the expected rate of return on the stock : Steady As She Goes, Inc., will pay a year-end dividend of $2.50 per share. If the stock currently sells for $25 per share, what is the expected rate of return on the stock? If the expected rate of return on the stock is 16.5 percent, what is the stoc..

Wholesaler with fiscal year ended-external audit : Colorado Springs Company (CSC) is a wholesaler with fiscal year ended December 31 of previous year. Since it is publicly-traded, it undergoes external audit. The most recent audit was completed in February of this year. Specifically, CSC’s accounting..

User Account

All Pages