Three Years from Now, Barbara Waters Will Purchase a Laptop

Multiple Choice

Three years from now, Barbara Waters will purchase a laptop computer that will cost $2,250. Assume that Barbara can earn 6.25% (compounded monthly) on her money. How much should she set aside today for the purchase? Round off to the nearest $1.

A) $1,250
B) $900
C) $1,866
D) $3,775