Beginning three months from now, you want to be able to withdraw $2,700 each quarter from your bank account to cover college expenses over the next four years. If the account pays .67 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Amount needed

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Problem 5-26 Calculating Annuity Present Values (LO 1]
Beginning three months from now, you want to be able to withdraw $2,700 each quarter
from your bank account to cover college expenses over the next four years.
If the account pays .67 percent interest per quarter, how much do you need to have in
your bank account today to meet your expense needs over the next four years? (Do not
round intermediate calculations and round your answer to 2 decimal places, e.g.,
32.16.)
Amount needed
Transcribed Image Text:Problem 5-26 Calculating Annuity Present Values (LO 1] Beginning three months from now, you want to be able to withdraw $2,700 each quarter from your bank account to cover college expenses over the next four years. If the account pays .67 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Amount needed
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