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Dr. J. wants to buy a Dell computer which will cost $2,500 six years from today....

Dr. J. wants to buy a Dell computer which will cost $2,500 six 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 8% annual return. How much should he set aside? Use Appendix C to calculate the answer. (Round your final answer to 2 decimal places.)

Multiple Choice

  • $315.79

  • $340.79

  • $390.79

  • $440.79

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Answer #1
Amount required at the end of 6 yrs 2500
Divide: Annuity FVF at 8% for 6 yrs 7.33593
Annual deposits required 340.7884
Answer is 340.79
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