Jimmy, a self-employed individual, is opening a retirement account at a bank. His goal is to accumulate $1,000,000 in the account by the time he retires from work in 20 years time. A local bank is willing to open a retirement account that pays 8% interest compound annually throughout the 20 years. Jimmy expects that his annual income will increase 6% yearly during his working career.

He wishes to start with a deposit at the end of year 1 (A₁) and increase the deposit at a rate of 6% each year thereafter. What should be the size of his first deposit (A₁)? The first deposit will occur at the end of year 1, and subsequent deposits will be made at the end of each year. The last deposit will be made at the end of year 20.

Group of answer choices

$13,756.84

$11,585.61

$12,377.52

$14,022.38