Question: As a manager in charge of information processing for a fast-growing company, you realize that your current computer will only serve your needs for the

As a manager in charge of information processing for a fast-growing company, you realize that your current computer will only serve your needs for the next six years. At that time, you will replace it with a more efficient model, which at that time will cost an estimated $750,000. If the anticipated rate of interest is 8 percent for the next six years, how much money should you place in a special investment fund today so that you will have a balance of $750,000 six years from now? (Assume annual and ignore taxes.)

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