You Are Considering Two Savings Options

question 51

Multiple Choice

You are considering two savings options.Both options offer a 7.4 percent rate of return.The first option is to save $900,$1,500,and $3,000 at the end of each year for 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 account 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)$3,410
• B)$3,530
• C)$3,600
• D)$4,560
• E)$4,780

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Definitions:

Motor Unit

A functional component of the muscular system, consisting of a single motor neuron and all of the muscle fibers it innervates, allowing for precise control of muscle movement.

Motor Neurons

Neurons that transmit impulses from the brain or spinal cord to muscles or glands, inducing action.

Electromyography

A diagnostic procedure that assesses the health of muscles and the nerve cells that control them by measuring the electrical activity.

Skeletal Muscles

Voluntary muscles attached to the skeleton that are responsible for movement and are controlled consciously.