(Present value) Sarah Wiggum would like to make a single investment and have $2.3 million at...
(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 7 percent annually. How much will Sarah have to invest today?
a. If Sarah can earn 7 percent annually for the next 26 years, the amount of money she will have to invest today is
If Sarah earned an annual return of 17 percent, how soon could she then retire?
Homework Answers
1.Information provided:’
Future value= $2,300,000
Time= 26 years
Interest rate= 7%
The question is solved by computing the present value.
Enter the below in a financial calculator to compute the present value:
FV= 2,300,000
N= 26
I/Y= 7
Press the CPT key and PV to compute the present value.
The value obtained is 396,049.63.
Therefore, Sarah must invest $396,049.63 today.
2. Information provided:’
The time to retirement is computed by entering the below in a financial calculator:
FV= 2,300,000
PV= -396,049.63
I/Y= 17
Press the CPT key and N to compute the time to retirement.
The value obtained is 11.2043.
Therefore, Sarah could retire in 11.20 years.
In case of any query, kindly comment on the solution
Add Answer to:
(Present value) Sarah Wiggum would like to make
a single investment and have $2.3 million at...
(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and...
(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 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 16 percent, how soon could she then retire? a. If Sarah can earn 5 percent annually for the next 28 years, the amount of money...
Sarah Wiggum would like to make a single investment and have $1.8 million at the time...
Sarah Wiggum would like to make a single investment and have $1.8 million at the time of her retirement in 35years. 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 14 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 is...
Sarah Wiggum would like to make a single investment and have 2.1 million at the time...
Sarah Wiggum would like to make a single investment and have 2.1 million at the time of her retirement in 35 years. She has found a mutual fund that will earn her 7 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 14 percent. How soon could she retire? A If Sarah can earn 7 percent annually for the next 35 years, the amount of money she will have to invest today...
(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $1.6 milli...
(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $1.6 million at the time of her retirement in 32 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 14 percent, how soon could she then retire? (Round to a. If Sarah can earn 6 percent annually for the next 32 years, the amount...
Sarah Wiggum would like to make a single investment and have $2.7 million at the time...
Sarah Wiggum would like to make a single investment and have $2.7 million at the time of her retirement in 25 years. She has found a mutual fund that will earn 6 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 $2.7 million?
business finance
(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $2.0 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 earned an annual return of 14 percent, how soon could she then retire?
22) Maria would like to make a single investment and have $1 million at the time...
22) Maria would like to make a single investment and have $1 million at the time of her retirement in 20 years. She has found a mutual fund that will earn 6 percent annually. How much will Maria have to invest today? (6p)
Q:2 Sarah would like to make a single investment and have $2,000,000 at the time of...
Q:2 Sarah would like to make a single investment and have $2,000,000 at the time of her retirement in 35 years. She has found a mutual fund that will earn 4% annually. How much will Sarah have to invest today? If Annual Percentage Rate (APR) is 10%, calculate the effective Annual Rate (EAR) when interest rate is compounded i. Monthly ii. Continuously (4+4 = 8 marks)
1. You are saving for retirement. You have decided that one year from today you will...
1. You are saving for retirement. You have decided that one year from today you will begin investing 10 percent of your annual salary in a mutual fund which is expected to earn a return of 12 percent per year (compounded semi-annually). Your present salary is $30,000, and you expect that it will grow by 4 percent per year throughout your career (consequently, your investment at time 1 will be $3,000, your investment at time 2 will be $3,120, etc.)....
0.713 0.822 0.790 0.760 0.784 0.746 0.711 0.677 0.747 0.705 0.665 0.650 0.567 0.543 0.497 0.432...
0.713 0.822 0.790 0.760 0.784 0.746 0.711 0.677 0.747 0.705 0.665 0.650 0.567 0.543 0.497 0.432 0.376 0.476 0.456 0.437 5 0.951 0.906 0.863 0.681 0.621 0.593 0.519 0.419 0.402 0.888 0.564 0.513 0.352 0.942 0.933 0.837 0.666 0.630 0.596 0.535 0.507 0.480 0.456 0.410 0.390 0.370 0.335 0.871 0.547 0.482 0.354 0.333 0.285 0.314 0.813 0.452 0.425 0.400 0.279 0.623 0.583 0.296 0.540 0.500 0.327 0.923 0.853 0.789 0.731 0.627 0.582 0.502 0.467 0.434 0.404 0.376 0.351 0.305 0.266...
(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 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 16 percent, how soon could she then retire? a. If Sarah can earn 5 percent annually for the next 28 years, the amount of money...
(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $1.6 million at the time of her retirement in 32 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 14 percent, how soon could she then retire? (Round to a. If Sarah can earn 6 percent annually for the next 32 years, the amount...
22) Maria would like to make a single investment and have $1 million at the time of her retirement in 20 years. She has found a mutual fund that will earn 6 percent annually. How much will Maria have to invest today? (6p)
Q:2 Sarah would like to make a single investment and have $2,000,000 at the time of her retirement in 35 years. She has found a mutual fund that will earn 4% annually. How much will Sarah have to invest today? If Annual Percentage Rate (APR) is 10%, calculate the effective Annual Rate (EAR) when interest rate is compounded i. Monthly ii. Continuously (4+4 = 8 marks)
0.713 0.822 0.790 0.760 0.784 0.746 0.711 0.677 0.747 0.705 0.665 0.650 0.567 0.543 0.497 0.432 0.376 0.476 0.456 0.437 5 0.951 0.906 0.863 0.681 0.621 0.593 0.519 0.419 0.402 0.888 0.564 0.513 0.352 0.942 0.933 0.837 0.666 0.630 0.596 0.535 0.507 0.480 0.456 0.410 0.390 0.370 0.335 0.871 0.547 0.482 0.354 0.333 0.285 0.314 0.813 0.452 0.425 0.400 0.279 0.623 0.583 0.296 0.540 0.500 0.327 0.923 0.853 0.789 0.731 0.627 0.582 0.502 0.467 0.434 0.404 0.376 0.351 0.305 0.266...
Most questions answered within 3 hours.
-
How would you train your employees to avoid risks of using
mobile devices?
asked 8 minutes ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 1 hour ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 1 hour ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 2 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 4 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 3 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 5 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 6 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 6 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 6 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 6 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 6 hours ago