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.

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Definitions:

Lava Fountain

A jet of molten lava that is ejected into the air from a volcanic vent.

Pyroclastic Column

A dense cloud of hot ash, gas, and volcanic matter that rises above a volcano during an explosive eruption.

Lava Dome

A dome-shaped mountain or hill of at least partly solidified lava generally of felsic to intermediate composition.

Lava Flow

Magma that erupts onto the surface and flows downhill from the vent; also the solidified body of rock formed by this magma.