Question

Sarah Wiggum would like to make a single investment and have $1.3 million at the time of her retirement in 30 years. She has found a mutual fund that will earn 3 percent annually. How much will Sarah have to invest today? If Sarah invests that amount and could earn a 13 percent annual return, how soon could she retire, assuming she is still going to retire when she has $1.3 million?

Answer #1

Sarah Wiggum would like to make a single investment and have $
1.3 million at the time of her retirement in 30 years. She has
found a mutual fund that will earn 3% annually. How much will Sarah
have to invest today? If Sarah invests that amount and could earn
a 15% annual return, how soon could she retire, assuming she is
still going to retire when she has $ 1.3 million? Click on the
table icon to view the...

Sarah Wiggum would like to make a single investment and have
$2.3 million at the time of her retirement in 34 years. She has
found a mutual fund that will earn 8 percent annually. How much
will Sarah have to invest today? If Sarah earned an annual return
of 16 percent, how soon could she then retire?

Sarah Wiggum would like to make a single investment and have
$1.9 million at the time of her retirement in 25 years. She has
found a mutual fund that will earn 55 percent annually. How much
will Sarah have to invest today? If Sarah earned an annual return
of 15 percent, how soon could she then retire?

(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
17
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...

1.Sarah Wiggum would like to make a single investment and have
$1.8 million at the time of her retirement in 35 years. She has
found a mutual fund that will earn 7 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 7 percent annually for the next 35 years,
the amount of money she will have to invest today...

(Future value) Sarah Wiggum would
like to make a single lump-sum investment and have $1.7 million
at the time of her retirement in 28 years. She has found a mutual
fund that expects to earn 5 percent annually. How much must Sarah
invest today? If Sarah earned an annual return of 16 percent, how
much must she invest today?
If Sarah can earn 5 percent annually for the next 28 years,
how much will she have to invest today?
$...

To make provision for the possible impact of recessions in the
future, Albany Mutual Bank would like to set up a reserve fund. The
fund will earn an interest rate of 6% per annum. If the fund pays a
fixed amount of $12 million to the bank annually for an infinite
period, starting two years from today and the annual payment grows
at 2.5% per annum, how much does the bank need in the fund
today?

Alma wants to have $20,000 in her investment account ten years
from now. Currently, she has nothing saved. How much would she have
to deposit today to reach her goal if this is the only amount she
invests? She expects to earn 8.5 percent, compounded annually. How
much must she deposit today?

Jane would like to retire on $15,000 per month with the
first retirement check on the day she retires. She expects to live
for 30 years after retirement. If her investment account earns 9%,
how much must she have in the account on the day she retires to
fund this retirement? (could you please show formulas)
a. 5,400,000
b. 407,004
c. 2,180,000
d. 1,878,210
e. 1,864,228

Kerry Wate Plans to retire in exactly 10 years time, and he has
a plan to create a fund that will allow him to receive
$10,000 at the end of each year for the 20 years between
retirement and death (a psychic has told him that he would
die after 20 years). He is also been advised that he will be able
to earn 7.5% interest per year during the
retirement period.
How large a fund will Kerry need when...

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