The amount of money she will have to invest today

Assignment Help Financial Management

Reference no: EM131616047

Sarah Wiggum would like to make a single investment and have $2.4 million at the time of her retirement in 32 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 15 percent, how soon could she then retire?

a. If Sarah can earn 4 percent annually for the next 32 years, the amount of money she will have to invest today is $ (Round to the nearest cent.)

Reference no: EM131616047

Questions Cloud

New sausage system-what is the npv of project : Kolby’s Korndogs is looking at a new sausage system. If the tax rate is 30 percent and the discount rate is 6 percent, what is the NPV of this project?

Explain what it means by going long in futures contract : Explain what it means by going long in a futures contract.

Portfolio consisting of common stock : Assume you have a portfolio consisting of common stock.Calculate and show how many futures contracts are needed and state if you will go long or short.

Stock intrinsic value using dividend constant growth model : Find the stock's intrinsic value using the dividend constant growth model and the required rate of return implied by Capital Asset Pricing Model.

The amount of money she will have to invest today : If Sarah can earn 4 percent annually for the next 32 years, the amount of money she will have to invest today is $ (

Failure of nursing facility is usually measured : The financial success or failure of a nursing facility is usually measured by its: If a nursing facility borrows $10,000, which accounts are affected?

The primary value of accounting information : The primary value of accounting information is that such information. Short-term financial commitments are normally met by the nursing facility's.

The fixed cost per resident : If the facility's occupancy increase from 94% to 98%, the fixed cost per resident:

Example of fixed cost : Which one of the following is not normally considered to be a liquid asset? Which of the following is an example of a fixed cost?

User Account

All Pages