Dr. J. wants to buy an IBM personal computer which will cost $2,788 four years from today. - 4719

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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 

 

Answer: B Difficulty: Medium Type: Application 

 

 

Problems to be solved-Chapter 2

 
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