Two Payments of $850 and $600 Must Be Made Two

question 56

Multiple Choice

Two payments of $850 and $600 must be made two years and five years from now respectively. If money can earn 4% compounded semi-annually, what single payment, three years from now, would be equivalent to the two scheduled payments?

• A) $1,477.16
• B) $1,609.22
• C) $15,783.88
• D) $1,404.19
• E) $1,438.65

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Definitions:

Job Specifications

A detailed description of the qualifications, skills, experience, and attributes required for a particular job role.

Job Evaluation Systems

Methodologies used by organizations to assess the relative worth of jobs within the company, to ensure fair compensation.

Job Analysis

A systematic examination of a job to identify its component tasks, responsibilities, and the necessary skills, knowledge, and abilities for performance.

Red-Circling

A practice where an employee's pay is frozen or maintained at a high rate, despite the position's salary range being reduced or the employee moving to a lower-paid position.