Dr J Wants to Buy a Dell Computer Which Will Cost

question 43

Multiple Choice

Dr. J. wants to buy a Dell computer which will cost $3,000 three 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 8% annual return. How much should he set aside?

• A) $879
• B) $627
• C) $924
• D) $1,243