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

---

Definitions:

Global Operations Strategies

Refers to the planning and execution methodologies used by companies to manage and optimize their manufacturing, supply chain, and distribution networks around the world.

Quality Decision

A choice or determination made with the aim of enhancing or maintaining the quality of products or services.

Goods And Services

The tangible products (goods) and intangible activities (services) that fulfill consumer needs and are offered in the market.

Boeing's 787 Dreamliner

Boeing's 787 Dreamliner is an innovative, fuel-efficient long-haul aircraft produced by Boeing, featuring advanced materials and technologies.