Beginning three months from now, you want to be able to withdraw €1,200 each quarter from your bank account to cover university expenses over the next four years. Required: If the account pays 1 per cent 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? Assume the money is withdrawn at the beginning of the quarter. (Round your answer to 2 decimal places (e.g., 32.16). The program includes a margin of error of +/- 0.1%.)
Beginning three months from now, you want to be able to withdraw €1,200 each quarter from your bank account to cover university expenses over the next four years. Required: If the account pays 1 per cent 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? Assume the money is withdrawn at the beginning of the quarter. (Round your answer to 2 decimal places (e.g., 32.16). The program includes a margin of error of +/- 0.1%.)
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 24P
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| Beginning three months from now, you want to be able to withdraw €1,200 each quarter from your bank account to cover university expenses over the next four years. | |
| Required: | |
| If the account pays 1 per cent 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? Assume the money is withdrawn at the beginning of the quarter. (Round your answer to 2 decimal places (e.g., 32.16). The program includes a margin of error of +/- 0.1%.) | |
| PVA |
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