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I am making an investment today in an account providing 3% annual interest compounded annually. Identify...

I am making an investment today in an account providing 3% annual interest compounded annually. Identify the details below that I need in order to determine the dollar amount I must invest today in order to have $50,000 in 5 years.

What table must I use to find the relevant factor?

  1. Future value of single-sum
  2. Present value of single-sum
  3. Future value of ordinary annuity
  4. Present value of ordinary annuity

  What is the interest rate to find the relevant factor?

  What are the number of periods (n) to find the relevant factor?

What is the dollar amount I must invest today in order to have $50,000 in 5 years?

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