Chris wants to accumulate $100,000 in 5 years. He plans on making equal semiannual deposits into an investment account that earns 12% semiannually in order to reach his goal. How much must Chris invest every six months? (^PV^of^$1, ^FV^of^$1, ^PVA^of^$1, and ^FVA^of^$1) (Use appropriate factor(s) from the tables provided.) A) $7,586.79 B) $10,000.00 C) $24,331.19 D) $10,153.39 E) $13,586.77

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Quizplus · Accepted Answer

The correct answer is A.The future value of the annuity is $100,000. The interest rate is 12% semiannually, which is 6% per six months. The number of periods is 5 years * 2 = 10. The present value of the annuity is $7,586.79.

Chris Wants to Accumulate $100,000 in 5 Years