E connect FINANCE hapter 5 homework Question 14 (of 20) 4. 10.00 points value Pr

ID: 2749063 • Letter: E

Question

E connect FINANCE hapter 5 homework Question 14 (of 20) 4. 10.00 points value Problem 5-26 Calculating Annuity Present Values [LO 1 Beginning three months from now, you want to be able to withdraw $3200 each quarter from your bank account to cover college expenses over the next four years. Required: If the account pays 72 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? (Enter rounded answer as directed, but do not use rounded numbers in intermediate calculations. Round your answer to 2 decimal (e.g, 32.16).) Amount needed References eBook & Resources Worksheet Difficulity: Basic hapter 5 ho.X+.. ! ezto.mheducation.com/hm.tpx

Explanation / Answer

Future value

3200

Time in year

4 Years

Interest quarterly

0.72/4/100

Interest per quarter

0.0018

Future value = $3200(1+0.0018)16

Future value = $3200(1.1536)

= $3691.57