Question
An individual would like to accumulate $1 million by his retirement date, which is 24 years from now. He will make 24 deposits in your
An individual would like to accumulate $1 million by his retirement date, which is 24 years from now. He will make 24 deposits in your bank, with the first occurring today. The bank pays 8.18% interest, compounded annually. He expects to get an 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 4% greater than your first, the third will be 3% greater than the second, etc.). How much must the individual first deposit be to meet his goal? Please round the answer to the nearest cent, and provide it in n Excel spreadsheet
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