Starting one month from now,you would like to withdraw $200 per month from your bank account to pay for your university education.You expect the education (and the withdrawals)to last for the next four years.If the account pays 0.3% interest per month,how much money must you have in your bank account today to support your future needs?
A) $8,928.37
B) $7,157.02
C) $6,711.11
D) $8,794.50
E) $7,263.00

Question

Quizplus · Accepted Answer

PV = PMT × 11ea7fdb_fc1b_ff4e_a768_5103b72d9a25_TB2902_11 PV = 200 × 11ea7fdb_fc1b_ff4f_a768_6968e0f0dad1_TB2902_11 = $8,928.37
Using a financial calculator:
N = 48, I/Y = .3, PMT = -200, FV = 0, cpt PV = $8,928.37

Starting One Month from Now,you Would Like to Withdraw $200