Pete plans to purchase a custom car in five years in order to stave off a midlife crisis. He would like to have the sum of $200,000 in his car purchase fund in exactly five years.

Determine the amount Pete would have to invest today in order to have his car purchase fund grow to exactly $200,000 in five years if he can earn 8% annual interest rate, compounded semi-annually.

Select the answer that is closest to (within $250 above or below) what you calculated. If an answer is more than $250 away from what you calculated, you should consider it incorrect.

$92,638

$164,386

$135,112

$120,000

None of the above