Shane Wants to Invest Money in a 6% CD Account

Multiple Choice

Shane wants to invest money in a 6% CD account that compounds semiannually. Shane would like the account to have a balance of $100,000 four years from now. How much must Shane deposit to accomplish his goal?

A) $88,848.
B) $78,941.
C) $25,336.
D) $22,510.PV = $100,000 x .78941* = $78,941 *PV of $1: n=8; i=3%