The Design Team Just Decided to Save $1,500 a Month

question 90

Multiple Choice

The Design Team just decided to save $1,500 a month for the next 5 years as a safety net for recessionary periods.The money will be set aside in a separate savings account which pays 4.5 percent interest compounded monthly.The first deposit will be made today.What would today's deposit amount have to be if the firm opted for one lump sum deposit today that would yield the same amount of savings as the monthly deposits after 5 years?

• A)$80,459.07
• B)$80,760.79
• C)$81,068.18
• D)$81,333.33
• E)$81,548.20

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Definitions:

Crop Rotation

An agricultural practice of growing different types of crops in the same area in sequential seasons to improve soil health and reduce pests.

Monocultures

The agricultural practice of growing a single species, variety, or breed of plant or animal in a field or farming system at a time.

Barrier Hedges

Rows of dense shrubbery planted to act as windbreaks or to mark boundaries, also potentially reducing soil erosion or serving as wildlife habitat.

Genetic Resistance

The inherent ability of an organism to resist or withstand infection, pest attacks, or herbicides due to its genetic makeup.