7. Sarah Wiggum would like to make a single investment and have $1.7 million at

Question

7. Sarah Wiggum would like to make a single investment and have $1.7 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 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)

b. If Sarah can earn an annual return of 17 percent, the number of years until she could retire is _______ years. (Round to one decimal place)

Explanation / Answer

a. Sarah Wiggum should invest $433,659 today.

b.If Sarah can earn an annual return of 17 percent on Investment of $433,659 today , the number of years until she could retire is 8.7 years. (Round to one decimal place)

Related Questions

Navigate

• Browse (All)
• Browse 7
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.