DrJWants to Buy an IBM Personal Computer Which Will Cost

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