What should be the size of his first deposit (a1)

Assignment Help Econometrics

Reference no: EM131144585

Geometric Gradient: Find A1, Given F, g, i, and N

Jimmy Carpenter, a self-employed individual, is opening a retirement account at a bank. His goal is to accumulate $1,000,000 in the account by the time he retires from work in 20 years' time. A local bank is willing to open a retirement account that pays 8% interest compounded annually throughout the 20 years. Jimmy expects that his annual income will increase 6% yearly during his working career. He wishes to start with a deposit at the end of year 1(A1) and increase the deposit at a rate of 6% each year thereafter. What should be the size of his first deposit (A1)? The first deposit will occur at the end of year 1, and subsequent deposits will be made at the end of each year. The last deposit will be made at the end of year 20.

Reference no: EM131144585

Questions Cloud

Write an information report on snapchat transpod inc : write a four-to-five-page information report on Snapchat TransPod Inc. Follow the submission requirements outlined for you.

Determine the radius of the wire : When a mass of 25 kg is hung from the middle of a fixed straight aluminum wire, the wire sags to make an angle of 12i with the horizontal as shown in Fig. 9-77. Determine the radius of the wire.

How does data leakage occur in an organization : The focus of the research paper is Data Leakage. How does data leakage occur in an organization? What are the common causes of this problem? How would use address this troublesome trend?

Which operation is the bottleneck and bottleneck time : A production process at Kenneth Day Manufacturing is shown below. The drilling operation occurs separately from, and simultaneously with, the sawing and sanding operations. A product needs to go through only one of the three assembly operations (the ..

What should be the size of his first deposit (a1) : What should be the size of his first deposit (A1)? The first deposit will occur at the end of year 1, and subsequent deposits will be made at the end of each year. The last deposit will be made at the end of year 20.

Identify steps required for implementing a physical security : Analyze the design process for defining a customized security solution. Give your opinion as to which step in this design process is most significant. Identify three steps required for implementing a physical and environmental security program.

Analyze type of internal records used to support health care : Analyze the types of internal records used to support health care marketing applications and make at least one recommendation for an additional source of data and/or information that would prove useful. Explain your rationale.

How does strong hr department improve company : How does a strong HR department improve a company? Give specific examples from three companies where HR made a difference (for example, in a struggling company, in a new company, in a company after a disaster or takeover, etc). What can HR do to help..

About forthcoming changes to hospital information systems : The new CEO sent an e-mail to all departments, stating that there will be four hospital-wide staff meetings scheduled to acquaint employees with the hospital's future plans. How do you think the CEO should best address staff about the forthcoming cha..

User Account

All Pages