You Need to Have $35,000 on Hand to Buy a New

Multiple Choice

You need to have $35,000 on hand to buy a new Lexus five years from today. To achieve that goal, you want to know how much you must invest today in a certificate of deposit guaranteed to return you 3% per year. To help determine how much to investment today, you will use:

A) present value factors
B) annuity value factors
C) present value factors of an annuity
D) future value factors of an annuity