Jerry Wishes to Retire in Five Years with $1 Million

question 35

Essay

Jerry wishes to retire in five years with $1 million in his bank account.If the account pays 4% and his current balance is $500,000,how much must he deposit at the beginning of each of the next five years for his wish to come true? The amount must be the same each year.

---

Definitions:

Cost Of Goods Sold

The total direct expenses related to producing goods sold by a business.

Net Income

The profit a company has after deducting all its expenses from its total revenue.

Unit Costs

The cost incurred to produce, purchase, or supply one unit of a product or service, calculated by dividing total costs by the number of units produced or purchased.

Inventory Items

Goods or materials that a business holds for the purpose of sale or production.