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Calculating the PV of future financial requirements

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

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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.

$2.19