Joyce would like to make a single investment and have 2 million at the time of her retirement in 35 years.

Joyce 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 Joyce have to invest today? (Show your work)

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Expert Solution

The amount is computed as follows:

Present value = Future value / (1 + r)ⁿ

= 2,000,000 / 1.04³⁵

= 2,000,000 / 3.946088994

= 506,830.94

jeff jeffy answered 2 years ago

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