The finance team is helping a local supplier create a sinking fund to finance a much-needed expansion. They are looking at some various CD and savings options to create the sinking fund. They are going to need $75,000 at the end of month 3, $60,000 at the end of month 4 and $120,000 at the end of month 6. The supplier has been working with local banks, the following table outlines their current return on various CDs.

They offer a savings account that would return 0.85% per month as a 1-month option. The account does require a one-time $1,000 setup fee in order to use the account for any time period. Each CD option has a minimum investment of $25,000. Create an Excel model to determine the optimum investment strategy to meet the required payments.

Term (months) Return 1.87% 2.49% 3.74% 5.21% 6.50% Term (months) Return 1.87% 2.49% 3.74% 5.21% 6.50%