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Sagot :
Answer:
$21,630.44
Explanation:
Calculation for How much do you need to have in your account today to meet your expense needs over the next 4 years
Rate Per quarter =1.25%
PMT =1,500
Number of Periods =4*4 =16
Based on the information given we are going to find the Present value (PV) by using annuity due formula
PV =PMT*((1-(1+r)^-n)/r)
Let plug in the formula
PV=$1,500*((1-(1+0.0125)^-16)/0.0125)
PV=$1,,500*((1-(1.0125)^-16)/0.0125)
PV=$1,500*((1-0.8197463466))/0.0125)
PV=$1,500*(0.1802536534/0.0125)
PV=$1,500*14.420292272
PV=$21,630.44
Therefore the amount you will need to have in your account today to meet your expense needs over the next 4 years will be $21,630.44
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