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You have a goal of having $290,000 three years from today. The return on the investment is expected to be 12% and will be compounded semi-annually. The amount that needs to be invested today is closest to: (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.)

Respuesta :

Answer:

$204,450

Explanation:

The computation of the present value is shown below:

= Amount × PVF for 6 years at 6%

= $290,000 × 0.705

= $204,450

Refer to the PVF table

Simply we multiply the amount with the PVF so that the accurate amount can come.  

The present value is come after considering the discount rate for the given number of periods.

In semi-annual payment, the rate is half and the time period is double

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