Explore BrainMass

Explore BrainMass

    Calculating the PV of future financial requirements

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Beginning three months from now, you want to be able to withdraw $1,700 each quarter from your bank account to cover college expenses over the next 4 years. The account pays 1.25 percent interest per quarter. How much do you need to have in your account today to meet your expense needs over the next 4 years?

    $24,514.50
    $25,068.00
    $24,847.15
    $25,711.18
    $25,454.09

    © BrainMass Inc. brainmass.com March 5, 2021, 12:57 am ad1c9bdddf
    https://brainmass.com/business/annuity/calculating-the-pv-of-future-financial-requirements-549562

    Solution Preview

    Number of withdrawals=4*4=16
    Interest rate=i=1.25% per ...

    Solution Summary

    Solution depicts the steps to estimate the current value of future financial requirements in the given case.

    $2.49

    ADVERTISEMENT