Growing annuity payments-first deposit be to meet your goal

Assignment Help Financial Management

Reference no: EM131013437

Growing Annuity Payments

You want to accumulate $2 millions by your retirement date, which is 25 years from now. You will make 25 deposits in your bank, with the first occurring today. The bank pays 9.41% interest, compounded annually. You expect to get an annual raise of 5%, which will offset inflation, and you will let the amount you deposit each year also grow by 5% (i.e., your second deposit will be 5% greater than your first, the third will be 5% greater than the second, etc.). How much must your first deposit be to meet your goal? Round your answer to the nearest cent.

Reference no: EM131013437

Questions Cloud

Disadvantage of partnership form of business organization : Each of the following is a disadvantage of the partnership form of business organization EXCEPT

Find the average rate at which oil drains : Find the average rate at which oil drains during the first 15 minutes. Find the average rate at which oil drains during the time interval [10, 15].

Calculate the semimajor axis of a phasing orbit : Satellites A and B are in the same circular orbit of radius r. B is 1800 ahead of A. Calculate the semimajor axis of a phasing orbit in which A will rendezvous with B after just one revolution in the phasing orbit.

Describe the impact of various forms of competition : Analyze the dynamics of supply and demand to anticipate market equilibrium.

Growing annuity payments-first deposit be to meet your goal : You want to accumulate $2 millions by your retirement date, which is 25 years from now. You will make 25 deposits in your bank, with the first occurring today. The bank pays 9.41% interest, compounded annually. How much must your first deposit be to ..

Calculate the total delta-v requirement for each spacecraft : Spacecraft A is 600 km behind the space station and spacecraft B is 600 km ahead of the space station. At the same instant, both spacecraft apply a Dvt so as to arrive at the space station in one revolution of their phasing orbits. Calculate th..

Please help explain the tax consequences of acquiring : Please help explain the tax consequences of forming the corporation from the partnership.

Loan amortization-represent repayment of principal : Your company is planning to borrow $2.5 million on a 7-year, 15%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal?

Explain the history of the member jury requirement : Explain the history of the 12-member jury requirement. Do you agree with the right to a jury trial? Why is hearsay not allowed at trial? What is the significance of the Supreme Court's decision in Brady v. U.S.

User Account

All Pages