(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 25 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 15 percent, how soon could she then retire? a. If Sarah can earn 6 percent annually for the next 25 years, the amount of money she will have to invest today is S. (Round to the nearest cent.) b. If Sarah can earn an annual return of 15 percent, the number of years until she could retire is years. (Round to one decimal place.) (Related to Checkpoint 5.5) (Solving for n) How many years will it take for $500 to grow to $1,046.28 if it's invested at 10 percent compounded annually? The number of years it will take for $500 to grow to $1,048.28 at 10 percent compounded annually is years. (Round to one decimal place.) -
(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 25 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 15 percent, how soon could she then retire? a. If Sarah can earn 6 percent annually for the next 25 years, the amount of money she will have to invest today is S. (Round to the nearest cent.) b. If Sarah can earn an annual return of 15 percent, the number of years until she could retire is years. (Round to one decimal place.) (Related to Checkpoint 5.5) (Solving for n) How many years will it take for $500 to grow to $1,046.28 if it's invested at 10 percent compounded annually? The number of years it will take for $500 to grow to $1,048.28 at 10 percent compounded annually is 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
Related questions
Question
Ques 4 and 5
Transcribed Image Text:(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 25 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 15 percent, how soon could she then retire?
a. If Sarah can earn 6 percent annually for the next 25 years, the amount of money she will have to invest today is S. (Round to the nearest cent.)
b. If Sarah can earn an annual return of 15 percent, the number of years until she could retire is years. (Round to one decimal place.)
Transcribed Image Text:(Related to Checkpoint 5.5) (Solving for n) How many years will it take for $500 to grow to $1,046.28 if it's invested at 10 percent compounded annually?
The number of years it will take for $500 to grow to $1,048.28 at 10 percent compounded annually is years. (Round to one decimal place.)
-
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