You Are Considering Two Savings Options

question 122

Multiple Choice

You are considering two savings options. Both options offer a 4% rate of return. The first option is to save $1,200, $1,500, and $2,000 a year over the next three years, respectively. The other option is
To save one lump sum amount today. If you want to have the same balance in your savings at the
End of the three years, regardless of the savings method you select, how much do you need to
Save today if you select the lump sum option?

• A) $4,318.67
• B) $4,491.42
• C) $4,551.78
• D) $4,607.23
• E) $4,857.92

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Definitions:

Core Job Characteristics

Fundamental attributes of a job, such as skill variety, task identity, task significance, autonomy, and feedback, that can influence employee motivation and satisfaction.

Critical Psychological States

Specific conditions of the individual's psychological experience which are pivotal for determining outcomes like motivation, satisfaction, and performance at work.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Signature Liability

Liability that is attributed because of a party’s signature on an instrument.