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20 You want to accumulate $2,800,000 in your 401(k) plan by your retirement date, which is 40 years from now You will make 40 deposits
20 You want to accumulate $2,800,000 in your 401(k) plan by your retirement date, which is 40 years from now You will make 40 deposits into your plan, with the first deposit occurring TODAY The plan's rate of return typically averages 7% Annual inflation is expected nain at 3% You expect to increase each deposit by 3% as your income grows with inflation (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 that will be made today at TIME = O be to enable you to meet your goal? 0 $8,718.90 O $8,685.51 $9.283.98 O $11,383.88 $8.936.91
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