Unit 4 Question 6:

(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $2.3 million at the time of her retirement in 26 years. She has found a mutual fund that will earn 6 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 17 percent, how soon could she then retire? a. If Sarah can earn 6 percent annually for the next 26 years, the amount of money she will have to invest today is $ (Round to the nearest cent.) (Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $2.3 million at the time of her retirement in 26 years. She has found a mutual fund that will earn 6 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 17 percent, how soon could she then retire? a. If Sarah can earn 6 percent annually for the next 26 years, the amount of money she will have to invest today is $ (Round to the nearest cent.)