Final answer:
To reach his goal of $26,000 in 15 years, Mr. Fink should invest approximately $18,451.08 in a CD at a 2% interest rate compounded quarterly.
Step-by-step explanation:
To find out how much Mr. Fink should invest now in a CD to reach his goal, we can use the formula for compound interest: A = P(1+r/n)^(nt), where A is the future value, P is the principal (initial investment), r is the interest rate, n is the number of times the interest is compounded per year, and t is the number of years. In this case, Mr. Fink wants to have $26,000 in 15 years at an interest rate of 2% compounded quarterly.
Plugging the values into the formula, we get:
A = P(1+r/n)^(nt)
$26,000 = P(1+0.02/4)^(4*15)
To solve for P, we can divide both sides of the equation by (1.005)^60:
P = $26,000 / (1.005)^60
Calculating this, Mr. Fink should invest approximately $18,451.08 now in a CD to reach his goal.