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    Calculating the PV of future financial requirements

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    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?


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    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.