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

Question

Justin David

Business

17 June, 20:19

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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Answers (1)

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Moises Huerta · Answer 1

First multiply $2,700 times four quarters times four years to get a total of $43,200 needed. Then, work backwards by quarter to subtract the interest for 17 quarters: {$43,200 - ($43,200 times 0.0067) } repeated 17 times. The final answer is $38,279.52 needed to invest right now.