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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 $ ____________? (Round to the nearest cent).

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Answer #1

I she can earn 7% annually, she needs to invest:-

=PV(rate,nper,pm,fv)

=PV(7%,35,,2100000)

=196692.17

If she can earn 14% annually, she needs to invest:-

=PV(14%,35,,2100000)

=21406.69

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