Question: (Present value) Sarah Wiggum would like to make a single investment and have ?$1.6 million at the time of her retirement in 28 years. She

(Present value) Sarah Wiggum would like to make a single investment and have ?$1.6 million at the time of her retirement in 28 years. She has found a mutual fund that will earn 5 percent annually. How much will Sarah have to invest? today? If Sarah earned an annual return of 18 ?percent, how soon could she then? retire?

a. If Sarah can earn 5 percent annually for the next 28 ?years, the amount of money she will have to invest today is $_____ ?(Round to the nearest? cent.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

please answer part B (Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $1.6 million at the time of her retirement in 25 years. She has found a...

pls round to the nearest cent X P5-12 (similar to) Question Help Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $1.6 million at the time of...

Solving for n with non-annual periods)Approximately how many years would it take for an investment to grow if it were invested at 16 percent compounded ? Assume that you invest $1 today. If you...

a. If you deposit $5,000 today into an account earning an annual rate of return of 11%, in the third year how much interest would be earned? $ (Round to the nearest cent.) b. How much of the total is...

(1. (Present value): Sarah Wiggum would like to make a single investment and have $2.2 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 7 percent...

A motor has a resistance of and is connected to a 110-V line. (a) Is the operating current of the motor (1) higher than 44 A, (2) 44 A, or (3) lower than 44 A? Why? (b) If the back emf of the motor...

Suppose that Coca Cola and Pepsi are substitutes in consumption. If the price of Coca Cola decreases, then which of the following graphs would be relevant for Pepsi? Mod X A Graph A Graph B Click to...

What is the Task Force on Climate - related Financial Disclosures ( TCFD ) ? A newly - formed board that delivers comprehensive global sustainability - related disclosure standards A global...

Problem 1\ On February 20, 2023, I bought a 1967 Mustang for $11,275 . Over the\ next several months I fixed it up by making the following investments:\ Inputs:\ Pchse Date\ Pchse Price\ Sale Date\...