The amount of money she will have to invest today

Assignment Help Financial Management

Reference no: EM132022448

(Present value) Sarah Wiggum would like to make a single investment and have $1.6 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 18 percent, how soon could she then retire?

a. If Sarah can earn 5 percent annually for the next 28 years, the amount of money she will have to invest today is $_____ (Round to the nearest? cent.)

Reference no: EM132022448

Questions Cloud

Create a training proposal letter for a potential client : Discuss ways that you plan to apply what you learned in this course and instructional methods in your current(current position Accounting Specialist).

The new stock price after completing the reverse split : If the firm was currently trading at $4.52 per share, what was the new stock price after completing the reverse split?

Provide a brief overview of the health care organization : Provide a brief overview of the health care organization that you have selected for your Senior Project including a summary of the challenges.

Discuss the good point about the balanced scorecard : Good point about the balanced scorecard. Although not a tool for strategy creation it can be other aspects besides finance into the organizations view.

The amount of money she will have to invest today : If Sarah can earn 5 percent annually for the next 28 years, the amount of money she will have to invest today is

Result of the increased competition : Suppose the number of firms you compete with recently increased. You estimated that as a result of the increased competition, the demand elasticity

Identify an effective argument a colleague presented : Explain insights you have gained from having read and discussed their differing perspectives on the issue in the case study.

Total revenue increase or decrease with the change in price : Is the demand for Marco's elastic or inelastic. Did their total revenue increase or decrease with the change in price?

Analyze strengths and weaknesses of lifetime appointments : Analyze strengths and weaknesses of lifetime appointments of Supreme Court justices and whether or not you believe lifetime appointments have a positive impact

User Account

All Pages