Problem
Emma Watson is 22 years old and just graduated from college and is starting her first job that pays a salary of $75,000 a year. She wants to retire in 40 years and wants her portfolio to have a value $4,000,000 on her retirement date. She believes she is a fairly savvy investor and thinks she will earn 10% on her investment portfolio every year. She plans on increasing her contribution to her savings plan by 5% every year.
What is the minimum amount she will have to save in her first year (which will grow year after year) in order to meet her goal?