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

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Definitions:

Neuropathy

Damage or dysfunction of one or more nerves, typically resulting in numbness, pain, and weakness in the affected area.

Diabetic Retinopathy

An issue stemming from diabetes, this condition damages the blood vessels in the retina, the area at the back of the eye sensitive to light, affecting eyesight.

Pathology

The study and diagnosis of disease through examination of organs, tissues, bodily fluids, and whole bodies (autopsies).

Endocrine

A gland that secretes directly into the bloodstream.