To solve this problem, we need to use the formula for the present value of an annuity, since you want to withdraw a fixed amount periodically from the account over a specified period.

The formula for the present value of an ordinary annuity is:

$PV = W \times \left(1 - (1 + i)^{-nt}\right) / i$

Where:

• $PV$ is the present value (the amount the account needs to hold).
• $W$ is the regular withdrawal amount.
• $i$ is the interest rate per period.
• $n$ is the number of periods per year.
• $t$ is the total number of years.

Given:

• Regular withdrawal $W = 900$
• Interest rate = 3% annually (so $i = \frac{3\%}{4} = 0.0075$ since it is compounded quarterly).
• Time $t = 16$ years.
• Frequency is quarterly, so $n = 4$ (4 quarters per year).

Now, let's calculate it.The account needs to hold $45,613 to make it possible to withdraw $900 quarterly over 16 years with a 3% annual interest rate, compounded quarterly.

Would you like more details or have any questions?

Here are five related questions you could explore:

1. What is the future value of the annuity with the same terms?
2. How does changing the interest rate affect the required present value?
3. How much would you need if withdrawals were monthly instead of quarterly?
4. What happens to the present value if the time period is extended to 20 years?
5. What if the withdrawals were $1,000 instead of $900?

Tip: Always remember that the frequency of compounding has a significant impact on the overall growth or depletion of an investment.