Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the

Question:

Carol wants to invest money in a 6% CD account that compounds semiannually. Carol would like the account to have a balance of $140,000 2 years from now. How much must Carol deposit to accomplish her goal?
Present and tables of $1 at 3% are presented below:

PVAD $1 FV $1 PV $1 FVA $1 PVA $1 FVAD $1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000 1.91347 2. 1.06090 0.94260 2.030

12 1.42576 0.70138 14.6178 10.25262 14.1920 9.95400 13 1.46853 0.68095 15.6178 10.63496 10.95400 16.0863 14 1.51259 0.66

Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...