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Learning about time value of money

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After learning about time value of money, you do some retirement planning. You plan to retire 30 years from now and would like to have saved $1,000,000 by then. To achieve your goal, you plan to make 30 deposits, beginning today, in a bank account that will pay 5% interest, compounded annually. You expect to receive annual raises of 3%, so you will increase the amount you deposit each year by 3%. (That is, your 2nd deposit will be 3% greater than your first, the 3rd will be 3% greater than the 2nd, etc.) How much must your 1st deposit be if you are to meet your goal?

Reference no: EM132703477

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