Garth S. answered • 10/25/20

FINRA (SIE, 6, 7, 63, 65, 66, 24) and CFP, CRPC, ChFC Expert

Try using the formula below to solve for Present Value.

PV = FV * (1) / (1+R)^{ N}

FV = 2,000,000

R = .04

N = 35

Binji W.

asked • 10/23/20 **Part 1:** Sarah Wiggum would like to make a single investment and have $2 million at the time of her retirement in 35 years. She has found a mutual fund that will earn 4% annually. How much will Sarah have to invest today? What if Sarah were a finance major and learned how to earn a 14% annual return? How soon could she then retire?

**Part 2:** Explain the relationship between present and future value. Use the terms compounding and discounting in your answer.

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Garth S. answered • 10/25/20

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FINRA (SIE, 6, 7, 63, 65, 66, 24) and CFP, CRPC, ChFC Expert

Try using the formula below to solve for Present Value.

PV = FV * (1) / (1+R)^{ N}

FV = 2,000,000

R = .04

N = 35

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