(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $2.0 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 14 percent, how soon could she then retire? CIT a. If Sarah can earn 4 percent annually for the next 35 years, the amount of money she will have to invest today is $ 506,830 (Round to the nearest cent.) b. If Sarah can earn an annual return of 14 percent, the number of years until she could retire is years. (Round to one decimal place.) 4

(Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and have $2.0 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? If Sarah earned an annual return of 14 percent, how soon could she then retire? CIT a. If Sarah can earn 4 percent annually for the next 35 years, the amount of money she will have to invest today is $ 506,830 (Round to the nearest cent.) b. If Sarah can earn an annual return of 14 percent, the number of years until she could retire is years. (Round to one decimal place.) 4

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter5: Operating Activities: Purchases And Cash Payments

Section: Chapter Questions

Problem 3.4C

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