You need to have $48000 in cash in 3 years to pay for an important family event. You want a reasonably safe investment vehicle but would like to earn some interest on your funds. How much would you have to invest today into a 5-year CD earning 2.3 percent annual interest compounded annually to have exactly $48000 available in 5 years?

a. $33,545.10

b. $39,612.65

c.$40,536.93

d. $41,785.24

e. $42, 841.34

Answer rating: 100% (QA)

Answer To determine how much you would need to invest today into a 5year CD earning 23 annual intere... View the full answer