K Sarah Wiggum would like to make a single investment and have $2 4 million at the time of her retirement in 30 years. She has found a mutual fund that will eam 3 percent annually How much will Sarah have to invest today? Sarah invests that amount and could eam a 13 percent annual retum, how soon could she retire, assuming she is still going to retire when she has $24 milion? Click on the table icon to view the PVF table 4 To have $2 4 million at retirement, the amount Sarah must invest today is 5 (Round to the nearest cant) if Sarah invests that same amount and earn a 13% annual return, she could retire in approximately years (Round to one decimal place)
K Sarah Wiggum would like to make a single investment and have $2 4 million at the time of her retirement in 30 years. She has found a mutual fund that will eam 3 percent annually How much will Sarah have to invest today? Sarah invests that amount and could eam a 13 percent annual retum, how soon could she retire, assuming she is still going to retire when she has $24 milion? Click on the table icon to view the PVF table 4 To have $2 4 million at retirement, the amount Sarah must invest today is 5 (Round to the nearest cant) if Sarah invests that same amount and earn a 13% annual return, she could retire in approximately years (Round to one decimal place)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:K
Sarah Wiggum would like to make a single investment and have $2.4 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? Sarah invests that amount and could eam a 13 percent annual return, how soon could she retire, assuming she is still going to retire
when she has $2.4 million?
Click on the table icon to view the PVIF table
4
To have $2.4 million at retirement, the amount Sarah must invest today is 5 (Round to the nearest cent)
If Sarah invests that same amount and earn a 13% annual return, she could retire in approximately
years (Round to one decimal place)
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