What Is the Present Value of $1,400 a Year at a Discount

question 116

Multiple Choice

What is the present value of $1,400 a year at a discount rate of 8 percent if the first payment is received 7 years from now and you receive a total of 25 annual payments? 

• A) $9,417.69 
• B) $9,238.87 
• C) $9,333.33 
• D) $9,420.12 
• E) $9,881.72 

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Definitions:

Regression Line

A statistical tool used to understand the relationship between independent and dependent variables, often represented as a straight line on scatter plots.

Job Evaluation Points

A quantitative method used in job evaluation to rate positions based on specific criteria such as skill, effort, and responsibility.

Market Line

A graphical representation depicting the compensation levels across different jobs, typically illustrating the relationship between the job's relative worth and the pay provided.

Job Evaluation Results

The outcomes derived from a systematic process of determining the relative worth of various jobs within an organization, often influencing compensation.