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?
Number of withdrawals=4*4=16
Interest rate=i=1.25% per ...
Solution depicts the steps to estimate the current value of future financial requirements in the given case.