Dr. J. wants to buy an IBM personal computer which - 621

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Price: $1.25
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  • Posted on: Thu 01 Mar, 2012
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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 7% annual return. How much should he set aside?
A) $697.00
B) $627.93
C) $823.15
D) $531.81

 

Solution Description