You are saving for retirement. To live comfortably, you decide you will need to save $1 million by the time you are 60. Today is your 20th birthday, and you decide, starting today and continuing on every birthday up to and including your 60th birthday, that you will put the same amount into a savings account. If the interest rate is 3%, how much must you set aside each year to ensure that you will have $1 million in the account on your 60th birthday?

Because of the violent nature of the sport, professional american football players are at risk of suffering concussions (or brain injuries) during the violent collisions that occur between players during the game. violent collisions involving hits to the head are particularly risky. suppose the commissioner of the national football league (nfl) institutes a rule requiring players to wear a new, lighter helmet that is designed to reduce head trauma during collisions between players on the field. while the new helmets the probability of a concussion resulting from each individual collision, at the same time the new helmets could also give football players an incentive to play more , which could potentially the amount of violent collisions and thus the number of concussions suffered by nfl players, all else equal.