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(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
(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
17
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
$nothing.
(Round to the nearest cent.)
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