You have a goal of having $270,000 four years from today. the return on the investment is expected to be 8% 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.)
a) $180,000.
b) $197,989.
c) $135,000.
d) $197,289.

D $197,289

Explanation:

Compounding a present value for a future sum is calculated thus:

FV= PV(1+r/n)^nt

FV= $270,000

Rate= 8%

Time= 4yrs

Compounded semi annually

$270,000= PV(1+0.08/2)^2*4

270,000=PV(1.04)^8

270,000=PV(1.368569050405)

270,000/1.3685690504052736

PV= 197,289

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi