Beginning three months from now you want to be able to withd

Beginning three months from now, you want to be able to withdraw $2,900 each quarter from your bank account to cover college expenses over the next five years. If the account pays .51 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next five years? (Do not round intermedlate calculations and round your answer to 2 decimal places, e.g. 32.16.) ook value rint rencesS

Solution

Present Value = $55,006.94

Using financial calculator BA II Plus - Input details:

#

I/Y = Yield = Rate = YTM =

0.51

FV = Future Value =

$0

N = Number of payments = 5 x 4 =

20

PMT = Payments or Coupon =

-$2,900.00

CPT > PV = Present Value =

$55,006.94

Note: Both screenshots are asking same question hence both will have same answer

Using financial calculator BA II Plus - Input details:	#
I/Y = Yield = Rate = YTM =	0.51
FV = Future Value =	$0
N = Number of payments = 5 x 4 =	20
PMT = Payments or Coupon =	-$2,900.00
CPT > PV = Present Value =	$55,006.94