Sarah Wiggum would like to make a single investment and have $1.2 million at the time of her retirement in 30 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? If Sarah invests that amount and could ean a 14 percent annual return, how soon could she retire, assuming she is still going to retire when she has $1.2 million? Click on the table icon to view the PVIF table E To have $1.2 million at retirement, the amount Sarah must invest today is $| (Round to the nearest cent.)
Sarah Wiggum would like to make a single investment and have $1.2 million at the time of her retirement in 30 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? If Sarah invests that amount and could ean a 14 percent annual return, how soon could she retire, assuming she is still going to retire when she has $1.2 million? Click on the table icon to view the PVIF table E To have $1.2 million at retirement, the amount Sarah must invest today is $| (Round to the nearest cent.)
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter2: Using Financial Statements And Budgets
Section: Chapter Questions
Problem 6FPE
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Question
Transcribed Image Text:Click on
- X
Data table
To have
Present Value of $1 (PVIF)
11%
0.901
0.812
0.731
0.659
0.593
n
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
12%
13%
14%
15%
16%
17%
18%
19%
20%
0.971
0.943
0.915
0.888
0.909
0.826
0.751
0.683
0.990
0.893
0.862
0.855
0.840
0.962
0.925
0.889
0.855
0.952
0.943
0.890
0.935
0.926
0.857
0.794
0.735
0.917
0.885
0.870
0.756
0.847
0.718
0.609
0.516
0.437
1
0.980
0.877
0.833
2
0.980
0.961
0.907
0.873
0.842
0.797
0.783
0.769
0.743
0.731
0.706
0.694
0.971
0.961
0.942
0.924
0.772
0.708
0.624
0.534
0.840
0.792
0.747
0.705
0.665
0.627
0.592
0.558
0.527
0.497
0.469
0.816
0.693
0.675
0.658
0.572
0.641
0.552
0.579
0.482
3
0.864
0.712
0.593
4
0.823
0.763
0.636
0.613
0.592
0.499
0.822
0.784
0.746
0.906
0.863
0.681
0.621
0.564
0.951
0.713
0.650
0.567
0.543
0.519
0.497
0.476
0.456
0.419
0.402
0.535
0.482
0.790
0.596
0.432
0.410
0.354
0.305
0.263
0.370
0.314
0.266
0.225
6.
0.942
0.888
0.837
0.666
0.630
0.507
0.480
0.456
0.390
0.352
0.335
7
0.933
0.871
0.813
0.760
0.711
0.623
0.583
0.547
0.513
0.452
0.425
0.400
0.376
0.333
0.296
0.279
0.923
0.914
0.731
0.703
0.676
0.650
0.502
0.460
0.467
0.424
0.386
0.350
0.319
0.290
0.434
0.391
8
0.853
0.789
0.677
0.582
0.540
0.404
0.376
0.351
0.327
0.285
0.249
0.233
0.837
0.766
0.645
0.544
0.500
0.361
0.333
0.308
0.284
0.243
0.209
0.194
0.208
0.191
0.162
0.744
0.722
0.701
0.681
0.614
0.422
0.176
0.820
0.804
0.508
0.463
0.352
0.317
0.286
0.258
10
0.905
0.322
0.295
0.270
0.247
0.227
11
0.896
0.585
0.475
0.429
0.388
0.287
0.261
0.237
0.215
0.195
0.178
0.162
0.148
0.135
0.887
0.879
0.444
0.356
0.257
0.788
0.773
0.231
0.204
0.152
0.130
0.625
0.557
0.397
0.187
0.163
12
0.208
0.168
0.137
0.124
0.112
Help
0.601
0.368
0.326
0.182
0.145
0.116
Iswer
13
0.530
0.415
0.229
0.104
0.093
Transcribed Image Text:Sarah Wiggum would like to make a single investment and have $1.2 million at the time of her retirement in 30 years. She has found a mutual fund that will earn 4 percent annually. How much will Sarah have to invest today? If
Sarah invests that amount and could earn a 14 percent annual return, how soon could she retire, assuming she is still going to retire when she has $1.2 million?
Click on the table icon to view the PVIF table
To have $1.2 million at retirement, the amount Sarah must invest today is $
(Round to the nearest cent.)
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