Caulfield mogul Monty? Buxton, age 40, would like to retire at age 60. Once Mr. Buxton retires, he wants to withdraw $1.2 billion at the beginning of each year for 10 years from a special offshore account which will pay 27% annually.
In order to fund his retirement, Mr. Buxton will make 20 equal end-of-the-year deposits in this same special account which will pay 27% 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?