Dr J Wants to Buy a Dell Computer That Will Cost

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 beginning a year from now?

A) $879
B) $627
C) $924
D) $1,243