You Have Recently Accepted a One Year Employment Term by a Firm.The

question 36

Multiple Choice

You have recently accepted a one year employment term by a firm.The firm has given you the option of receiving your salary as a lump sum value of $30,000 at the end of the year or as 12 monthly payments of $2,400 starting one month after you start work.If your relevant discount rate is 2 percent per month,then which salary options would you prefer? (Ignore taxes,risk,and consumption needs. ) Choose the best answer.

• A) The lump sum payment,since it has the larger future value.
• B) Monthly payments,since you do not have to wait so long to receive your money.
• C) Either one,since they have the same present value.
• D) The lump sum payment,since it has the larger present value.
• E) Monthly payments,since it has the larger present value.

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Definitions:

Gestalt Therapy

A form of psychotherapy that emphasizes personal responsibility and focuses on the individual's experience in the present moment, the therapist-client relationship, and the environmental and social contexts of a person's life.

Directive

An official or authoritative instruction, often used in a policy or governance context.

Planned Exercises

Physical activities that are consciously organized and structured for health or fitness goals.

Present

The current moment or period of time.