Question

you need to have 35000 on hand to buy a new lexus fie years from today. to achieve that goal, you want know how much you must invest today in certificate of deposit guaranteed to return you 3% per year. to help determine how much to investment today you will use

Answer 1

Answer:

$30,191.31

Explanation:

The formula for calculating future value:

PV = FV (1 + r) ^-n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

35,000(1.03)^-5 = $30,191.31