How much needs to be invested today if your goal is to have $100,000 five years from today? The return on the investment is expected to be 10% and will be compounded semi-annually.
A)$61,390
B)$62,090
C)$66,667
D)$50,000

Question

Quizplus · Accepted Answer

The investment ($61,391) is equal to the future amount ($100,000) multiplied by the present value of $1, 10-period, 5% table value (.6139).

How Much Needs to Be Invested Today If Your Goal