You need to have $35,000 on hand to buy a new Lexus five years from today.To achieve that goal, you want to know how much you must invest today in a certificate of deposit guaranteed to return you 93% per year.To help determine what how much today investment is sum must betoday, you will use:
A)present value factors
B)future annuity value factors
C)present value factors of an annuity
D)future value factors of an annuity

Question

Quizplus · Accepted Answer

To determine how much to invest today to reach a specific future goal, we need to use present value factors. Future annuity value factors, present value factors of an annuity, and future value factors of an annuity are not relevant to this specific problem.

You Need to Have $35,000 on Hand to Buy a New