DrJWants to Buy an IBM Personal Computer Which Will Cost

question 24

Multiple Choice

Dr.J.wants to buy an IBM personal computer which will cost $2,788 four years from today.He would like to set aside an equal amount at the end of each year in order to accumulate the amount needed.He can earn a 7% annual return.How much should he set aside?

• A) $697.00
• B) $627.94
• C) $823.15
• D) $531.81

---

Definitions:

IPPS

An acronym typically standing for 'Inpatient Prospective Payment System', a method used by Medicare to pay for hospital stays.

Co-Morbidity

A separate condition or illness present in the same patient at the same time as another unrelated condition or illness.

Co-Morbidity

The simultaneous presence of two or more diseases or medical conditions in a patient.

Major Complication or Co-Morbidity

A significant secondary condition that can occur along with the primary disease, affecting the patient's recovery or treatment.