How much must your first deposit be

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Question: You anticipate that you will need $1,000,000 when you retire 30 years from now. 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: EM131933361

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