An investor wants to have $1 million in 20 years. If the return is 10% compounded annually, what lump-sum amount should be invested to attain the goal of the investor?

An investor wants to have $1 million in 20 years. If the return is 10% compounded annually, what lump-sum amount should be invested to attain the goal of the investor?

A $100,000

B $117,459

C $148,644

D $161,506

Solution

Correct Answer: Option C