(Present value). Sarah Wiggum would like to make a single investment and have $2.1 million at the time of her retirement and 26 years. She has found a mutual fund that will earn 7% annually. How much will Sarah have to invest today? If Sarah earned an annual return of 17%, how soon could she then retire?
a. If Sarah can earn 7% annually for the next 26 years, the amount of money she will have to invest today is $______.
b. If Sarah can earn an annual return of 17%, the number of years until she could retire is______years.