A 25-year old engineer is opening an individual retirement account (RRSP) at a bank. Her goal is to accumulate $1 million in the account by the time she retires in 40 years. The bank manager estimates she may expect to receive 8% nominal annual interest, compounded quarterly, throughout the 40 years. The engineer believes her income will increase at a 7% annual rate during her career. She wishes to start with as low a deposit as possible to her RRSP now and increase it at a 7% rate each year. Assuming end of year deposits, determine the amount she should deposit the first year. Select one:
a. $1212
b. $1010
c. $1414
d. $1616