(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 18 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 $_____ (Round to the nearest? cent.)