120 Healthcare Applications: 2. Meredith thinks CPSC's current computer hardware and software system will need to be replaced in three years at an estimated cost of $500,000. a. What amount must be currently invested in a CD paying 3 percent annual interest to accumulate to $500,000 in three years? (Hint: Use Excel's "PV function.) b. What annual interest rate will allow a current investment of $450,000 to accu- mulate to $500,000 after three years? (Hint: Use Excel's "Rate" function.) c. Another option for accumulating $500,000 in three years is to make three equal annual payments into a savings account earning 4 percent interest, with the first payment being made immediately. What type of annuity is this What is the amount of the equal annual payments? (Hint: Use Excel's "Pmt function.)