(Present value) Sarah Wiggum would like to make a single investment and have
$2.1
million at the time of her retirement in
28
years. She has found a mutual fund that will earn
6
percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of
16
percent, how soon could she then retire? a. If Sarah can earn
6
percent annually for the next
28
years, the amount of money she will have to invest today is
$enter your response here.
(Round to the nearest cent.)
Part 2
b. If Sarah can earn an annual return of
16
percent,
the number of years until she could retire is
enter your response here
years. (Round to one decimal place.)