How much must your deposit be if you are to meet your goal

Assignment Help Financial Management

Reference no: EM131573515

You want to accumulate $1 million 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 8% interest, compounded annually. you expect to get annual raises of 3%, which will offset inflation, and you will let the amount you deposit each year also grow by 3% (i.e., your second deposit will be 3% greater than your first, the third will be 3% greater than the second, etc.) How much must your first deposit be if you are to meet your goal?

Please show financial calculator solution.

Reference no: EM131573515

Questions Cloud

What was the delta ray brands net income after-tax : what was the Delta Ray Brands net income after-tax?

Use of the trade adjustment assistance program : Based on your own Internet research, provide an argument for or against the continued use of the Trade Adjustment Assistance program.

Change in sales is the only consequence of decision : If the change in sales is the only consequence of this? decision, what are its costs and? benefits? Is it a good? idea??

Signed contract to sell agricultural equipment : John Deere Manufacturing has just signed a contract to sell agricultural equipment to Bosch, a German firm, for euro 1.250.000.

How much must your deposit be if you are to meet your goal : You want to accumulate $1 million by your retirement date, which is 25 years from now. How much must your first deposit be if you are to meet your goal?

What nominal annual rate : What nominal annual rate should she quote to her credit customers?

What are some other key factors should be considered : What are some other key factors should be considered? What revenue growth rate should be used for each company for the future?

Calculating the number of payments to make monthly payments : Calculating the Number of Payments to make monthly payments of $350, How many payments will you have made when your account balance reaches $35,000?

Apartment rent increased-sources of down payment funds : What are possible sources of down payment funds for the Bensons? What actions would you recommend for the Bensons before they move forward with buying a home?

User Account

All Pages