A Client Agrees to Invest $100,000 Three Years from Now

question 24

Multiple Choice

A client agrees to invest $100,000 three years from now in a business project, and decides to deposit funds today in a bank account that pays 6 percent compound interest annually. How much does the client need to deposit in order to be able invest $100,000 in three years time?

• A) $82,000
• B) $83,961.93
• C) $119101.6
• D) $83,748.43