Sarah Wiggum would like to make a single investment and have $2 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? What if Sarah were a finance major and learned how to earn a 14 percent annual return? How soon could she then retire?
Answer to relevant QuestionsHow many years will the following take?a. $500 to grow to $1,039.50 if it’s invested at 5 percent compounded annuallyb. $35 to grow to $53.87 if it’s invested at 9 percent compounded annuallyc. $100 to grow to $298.60 if ...Approximately how many years would it take for an investment to grow fourfold if it were invested at 16 percent compounded semiannually?In 20 years, you would like to have $250,000 to buy a vacation home. If you have only $30,000, at what rate must it be compounded annually for it to grow to $250,000 in 20 years? Use a spreadsheet to calculate your answer.Seven years ago, Lance Murdock purchased a wooden statue of a Conquistador for $7,600 to put in his home office. Lance has recently married, and his home office is being converted into a sewing room. His new wife, who has ...What is the future value of each of the following streams of payments?a. $500 a year for 10 years compounded annually at 5 percentb. $100 a year for 5 years compounded annually at 10 percentc. $35 a year for 7 years ...
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