Dr J Wants to Buy a Dell Computer That Will Cost

question 61

Multiple Choice

Dr. J. wants to buy a Dell computer that 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 an 8% annual return. How much should he set aside at the end of each year?

• A) $879
• B) $627
• C) $924
• D) $9,738

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Definitions:

FDA Approval

FDA approval is the authorization granted by the U.S. Food and Drug Administration for a drug or medical device to be marketed or sold after it has been proven safe and effective for use.

Net Revenue

The total income generated from business activities after subtracting the costs of goods sold and operational expenses.

Expected Value

A calculated average outcome of a random variable, taking into account all possible values and their probabilities.

Sample Information

Data or observations collected from a subset of a larger population, used to estimate or infer characteristics about the whole population.