You Will Need to Buy a Replacement Computer, Costing $3

Multiple Choice

You will need to buy a replacement computer, costing $3 000, in five years time. If you have a bank account which earns 8% annual interest, how much must you put in the bank every year in order to have enough money for the replacement, assuming you make your first deposit in a year's time?

A) $511
B) $586
C) $666
D) $675
E) $712