Make single lump-sum investment

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Reference no: EM131611663

(Future value) Sarah Wiggum would like to make a single lump-sum investment and have $1.7 million at the time other retirement in 35 years. She has found a mutual fund that expects to earn 6 percent annually. How much must Sarah invest today? If Sarah earned an annual return of 15 percent, how much must she invest today?

a. If Sarah can earn 6 percent annually for the next 35 years, how much will she have to invest today? $ (Round to the nearest cent.)

b. If Sarah can earn 15 percent annually for the next 35 years, how much will she have to invest today? $ (Round to the nearest cent.)

Reference no: EM131611663

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