Question

You are going to college this year, and you need to take out $6000 every 3 months. Your college fund is in an account that pays 4% interest, compounded quarterly. What is the amount of money that you need in the account now to pay for your expenses for 3 years at college?

help

Answer 1

i = .04/4 = .01
n = 3*4 = 12
paym = 6000
PV = 6000(1 - 1.01^-12)/.01 = .....