A company needs to have $105,000 in 5 years, and will create a fund to insure that the $105,000 will be available. If it can earn a 6% return compounded annually, how much must the company invest in the fund today to equal the $105,000 at the end of 5 years?
(PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
A. $78,467
B. $31,500
C. $98,700
D. $73,500
E. $140,506
Answer: A
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