Zheng Sen Wishes to Accumulate $1 Million by the End

question 50

Multiple Choice

Zheng Sen wishes to accumulate $1 million by the end of 20 years by making equal annual end-of-year deposits over the next 20 years. If Zheng Sen can earn 10 percent on his investments, how much must he deposit at the end of each year?

• A) $ 14,900
• B) $ 50,000
• C) $117,453
• D) $ 17,460

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Definitions:

Unlimited Liability

A legal obligation where business owners and partners are personally responsible for all debts and liabilities of the business.

Societies Act

Legislation that governs the registration and management of not-for-profit corporations or societies in certain jurisdictions.

Partnership Exists

A legal relationship formed when two or more persons carry on a business in common with the aim of profit.

Profit Split

A financial arrangement where profits are divided among participants, typically in a business venture or partnership.