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Adam wishes to have $19,000 available in 18 years to purchase a new car for his son as a gift for his high school graduation. To accomplish this goal, how much should Adam invest now in a CD that pays 1.92% interest compounded semiannually? Adam should invest $ NOW. (Round to the nearest cent as needed.)​

Respuesta :

The amount of money Adam should save now in order to accomplish his goal is $13,470.30.

How much should Adam save now?

In order to determine the amount Adam should save now, the present valaue of $19,000 has to be determined. Present value is the sum of discounted cash flows.

Present value = future value / (1 + interest)^time

Interest = 1.92/2 = 0.96%

Time = 18 x 2 = 36

$19,000 / (1.0096^36) = $13,470.30

To learn more about present value, please check: https://brainly.com/question/26537392

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