1.Sarah Wiggum would like to make a single investment and have $1.8 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 7 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 7 percent annually for the next 35 years, the amount of money she will have to invest today is $____

b. If Sarah can earn an annual return of 18 percent, the number of years until she could retire is __ years.

2.

Approximately how many years would it take for an investment to grow sevenfold if it were invested at15 percent compounded semiannually? Assume that you invest $11 today.

a. If you invest $11 at 15 percent compounded semiannually about how many years would it take for your investment to grow sevenfold to $7 (Hint:Remember to convert your calculator solution to years.)

___years