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 an 6% annual interest rate, compounded 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.

$149,452

$188,680

$111,678

$152,000

None of the above