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Your Company Is Downsizing and Offers You a Bonus If

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Your company is downsizing and offers you a bonus if you retire early. You have a choice between a lump sum of $52,000 now or an income stream of $6200 per year for 10 years. You plan to use the money for a trip around the world in 10 years. You can earn interest at a continuous rate of 4%. Which option would be the better choice, and how much will you have for your trip?


Definitions:

Recent Appraisal

The process of evaluating and interpreting recent events or information.

Self-Actualization

In humanistic theory, the innate tendency to strive to realize one’s potential.

Disown Parts

The psychological process of rejecting or denying aspects of oneself, often due to shame or societal pressure.

Roadblocks

Obstacles or barriers that impede progress or the achievement of an objective.

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