Question

Sarah Wiggum would like to make a single investment and have ​$1.3 million at the time...

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?  

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Sarah Wiggum would like to make a single investment and have ​$ 1.3 million at the...
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...
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...
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...
​ (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...
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...
​(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...
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...
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...
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...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT