To find the present value, use the table to find the present value factor for 8% compounded quarterly over 4 years. The rate per period is 2% (8% annually divided by 4 quarters), and the number of periods is 16 (4 years times 4 quarters). From the table, the present value factor is 0.7350.
Calculate the present value:
Present Value = Future Value × Present Value Factor
Present Value = $25,000 × 0.7350 = $18,375
Therefore, Julia must invest $18,375 now.
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