Question: Within the excel spreadsheet i keep getting 9 1 8 9 . 3 4 . I think i may be doing this the wrong way.

Within the excel spreadsheet i keep getting 9189.34.I think i may be doing this the wrong way. Growing Annuity Payments
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 9% interest, compounded annually. You expect to receive annual raise 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? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!