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1.Sarah Wiggum would like to make a single investment and have ​$1.8 million at the time...

1.Sarah Wiggum would like to make a single investment and have ​$1.8 million at the time of her retirement in 30 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 15 ​percent, how soon could she then​ retire?  

2. Lance Murdock purchased a wooden statue of a Conquistador for $ 7,000 to put in his home office 8 years ago. Lance has recently​ married, and his home office is being converted into a sewing room. His new​ wife, who has far better taste than​ Lance, thinks the Conquistador is hideous and must go immediately. Lance decided to sell it on​ e-Bay and only received ​$4,900 for​ it, and so he took a loss on the investment. What was his rate of​ return, that​ is, the value of i​?

What was Lance​ Murdock's rate of​ return, that​ is, the value of i​? Enter a negative percentage for a loss.

_​% ​ (Round to two decimal​ places.)

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 11 months ago
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