Estimating 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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Finance Basics: Estimating pv of future financial requirements
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