Present and future value tables of $1 at 3% are presented below:

-Shane wants to invest money in a 6% CD account that compounds semiannually. Shane would like the account to have a balance of $100,000 four years from now. How much must Shane deposit to accomplish his goal?
A) $88,849.
B) $78,941.
C) $25,336.
D) $22,510.

Question

Present and future value tables of $1 at 3% are presented below:

-Shane wants to invest money in a 6% CD account that compounds semiannually. Shane would like the account to have a balance of $100,000 four years from now. How much must Shane deposit to accomplish his goal?
A) $88,849. 
B) $78,941. 
C) $25,336. 
D) $22,510.

Quizplus · Accepted Answer

PV = $100,000 × 0.78941* = $78,941
*PV of $1: n = 8; i = 3%

Present and Future Value Tables of $1 at 3% Are