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:

Meals

Food that is prepared and served to individuals or groups, often at set times of day.

Patient-Visits

A measure used in healthcare management to count the number of times patients receive clinical services.

Static Budget

A budget set for a specific level of activity that does not change, even if actual levels of activity change.

Total Overhead Cost

The comprehensive sum of all indirect costs involved in operating a business, not directly tied to a specific product or service.