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
million at the time of her retirement in 35 years. She has found a
mutual fund that will earn 4 percent annually. How much will Sarah
have to invest today? If sarah invests that amount and could earn a
14 percent annual return, how soon could she retire, assuming she
is still going to retire when she has $2 million?

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?
$...

Tilly would like to invest $3, 300 in before-tax income each
year in a retirement account or in stock investments outside the
retirement account. Tilly likes the stock investments outside the
retirement account because they provide her with more flexibility
and a potentially higher return. Tilly would like to retire in 30
years. If she invests money in the retirement account, she can
earn 77% annually. If she invests in stock outside the account,
she can earn 9% annually. Tilly...

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?

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