Examlex

Solved

You Anticipate That You Will Need $1,500,000 When You Retire

question 33

Multiple Choice

You anticipate that you will need $1,500,000 when you retire 30 years from now.You plan to make 30 deposits,beginning today,in a bank account that will pay 6% interest,compounded annually.You expect to receive annual raises of 4%,so you will increase the amount you deposit each year by 4%.(That is,your second deposit will be 4% greater than your first,the third will be 4% greater than the second,etc.) How much must your first deposit be if you are to meet your goal?


Definitions:

Related Questions