Answered: wants to invest money in a 6%…

wants to invest money in a 6% certificate of deposit that compounds interest semiannually. Tecate would like the account to have a balance of $50,000 five years from now. T

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

100%

Tecate wants to invest money in a 6% certificate of deposit that compounds interest
semiannually. Tecate would like the account to have a balance of $50,000 five years
from now. The amount Tecate must deposit now to accomplish their goal is closest
to:

$35,069

$43,131

$37,205

$35,000

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