Cole wants to invest some/all of his savings so that he can have a downpayment for a house in 10 years. His financial advisor gave him the following table, which shows two different products that he can invest in:

	Future Value	Interest Rate	Compounding Frequency	Present Value
Product 1	$40,000	11%	semi-annually	$13,709.16
Product 2	$40,000	9.5%	quarterly	$15,642.40

Which product should Cole choose and why?

Question 2

Sam would like to have $100,000 in savings by the time he retires, which is in 20 years. He can invest some money into an account that pays 12% per year,compounded semi-annually. Using the onlineTVM Calculator, determine the amount he must invest TODAY in order to reach his goal.

Future Value	Interest Rate	Compound Frequency	Number of years	Present Value