Question

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
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Ans $ 311804.73

FV = Future Value
PV = Present Value
r = rate of interest
n= no of period
PV = FV/ (1 + r )^n
PV = 1,000,000 / ((1 + 6%)^20)
PV = 311804.73
Add a comment
Know the answer?
Add Answer to:
22) Maria would like to make a single investment and have $1 million at the time...
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. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 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...

  •  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 ​$2.7 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? 

  • (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...

  • (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...

  • (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...

  • 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)

  • 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?  

  • 1. T 20) Which of the following financial intermediaries are depository institutions? A) A credit union...

    1. T 20) Which of the following financial intermediaries are depository institutions? A) A credit union B) A savings and loan association O A commercial bank D) All of the above E) Only A and C of the above SHORT ANSWER. Write your answer in the space provided or on a separate sheet of paper. 21) A manager holds a portfolio that is invested 25% in a bond with 5-year duration and 75% in a bond with 10-year duration. What...

  • 10. Present value: Maria Addai has been offered a future payment $750 of compounded annually, on...

    10. Present value: Maria Addai has been offered a future payment $750 of compounded annually, on her investment, what should she pay for this investment today? two years from now. If she can earn 6.5 percent, 11. Present value: Your brother has asked you for a loan and has promised to pay you$7,750 at the end of three years. If you normally invest to earn 6 percent per year, how much will you be willing to lend to your brother...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT