How much does Ralph need to invest today to have $150,000 in five years if he will earn 8% interest compounded quarterly on his investment? (Round to the nearest whole dollar)
A) $100,946
B) $102,041
C) $101,351
D) $73,171
E) $105,453

Question

Quizplus · Accepted Answer

PV = 11ea7fdb_fc2b_b6e3_a768_4d0457abc293_TB2902_00 PV = 11ea7fdb_fc2b_ddf4_a768_51b6494dab40_TB2902_00 = $100,945.70
Using a financial calculator:
N = 20, I/Y = 2, PMT = 0, FV = -150,000, cpt PV = $100,945.70

How Much Does Ralph Need to Invest Today to Have