You estimate that 30 years from now, when you retire, you will need $1,000,000. You plan to deposit 30 deposits from today into a bank account that will pay 5% interest compounded annually. You expect to receive a 3% raise annually, so you will increase your deposit by 3% each year. (So, your 2nd deposit will be 3% more than the first, 3rd deposit will be 3% more than the 2nd, etc.) How much should your 1st deposit be if you want to reach your goal?

Answer rating: 100% (QA)

To calculate the required amount of your first deposit in order to reach your retirement goal of 100... View the full answer