You are saving for retirement. To live comfortably, you decide to save RM3 million by the time you reach 65 years old. Today is your birthday aged 25 and you decide to start today and continue on every birthday up to 65th birthday, that you will put the same amount into a savings account. If the interest rate is 6%, how much must you set aside each year to make sure that you will have RM3 million in the account on your 65th birthday?

a. You realize that the plan has a problem. Due to the fact, your income will increase over a lifetime, it would be more realistic to save less now and more later. Instead of putting the same amount aside each year, you decide to let the amount that you set aside grow by 3% per year. Under this plan, how much will put into the first payment, so that subsequent payment will grow by 3%.