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Sarah Wiggum would like to make a single investment and have $2.5 million at the time of her retirement in 25 years. She has found
Sarah Wiggum would like to make a single investment and have $2.5 million at the time of her retirement in 25 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 25 years, the amount of money she will have to invest today is?
b. If Sarah can earn an annual return of 17 percent, the number of years until she could retire is?
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