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Use the Information for the Question(s)below

question 13

Multiple Choice

Use the information for the question(s) below.
Assume that you are 30 years old today and that you are planning on retirement at age 65.Your current salary is $45,000 and you expect your salary to increase at a rate of 5% per year as long as you work.To save for your retirement,you plan on making annual contributions to a retirement account.Your first contribution will be made on your 31st birthday and will be 8% of this year's salary.Likewise,you expect to deposit 8% of your salary each year until you reach age 65.Assume that the rate of interest is 7%.
-Dagny Taggart is a graduating college senior and she is considering the costs of going to medical school.Beginning next fall,Dagny expects medical school tuition to run $45,000 for the first year (paid at the end of each year) and she estimates that tuition will increase by 6% each year.If Dagny is able to invest her money in an account paying 8% interest per year,then the present value to Dagny of four years of medical school tuition is closest to:

Recognize the indirect influence leaders have on organizational performance determinants.

Highlight the importance of monitoring the external environment by top executives.

Understand the principles of dynamic hedging and the difference between dynamic and static hedging.

Comprehend the performance and limitations of the Black-Scholes option-pricing model.

Definitions:

Follower

An individual who supports and is guided by another person or by a group, ideology, or trend.

Playboy

A magazine or a person famed for their hedonistic lifestyle and involvement with numerous romantic partners.

Attend

To be present or participate in a particular event or activity.

Organizer

A person who brings order, manages tasks, or arranges events and responsible for planning and execution.