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

-Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $50,000 five years from now. How much must Carol deposit to accomplish her goal?
A) $35,069.
B) $43,131.
C) $37,205.
D) $35,000.

Question

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

-Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $50,000 five years from now. How much must Carol deposit to accomplish her goal?
A) $35,069. 
B) $43,131. 
C) $37,205. 
D) $35,000.

Quizplus · Accepted Answer

PV = $50,000 × 0.74409* = $37,205
*PV of $1: n = 10; i = 3%

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