Order to accumulate the amount needed


Question: 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

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Finance Basics: Order to accumulate the amount needed
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