Your Client Has a Choice of Either Receiving $5,000 Two

question 171

Short Answer

Your client has a choice of either receiving $5,000 two years from now or receiving a lump payment today. If your client can earn 5.4% compounded semi-annually, what amount received today is equivalent to $5,000 in two years? (Taken from CIFP course materials)

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Definitions:

Informed Decisions

Decisions made based on a thorough understanding of all relevant information, implications, and consequences.

NASW Code

The Code of Ethics of the National Association of Social Workers, providing guidance on the standards and ethical principles that govern the conduct of social workers.

Social Justice

The fair and just relation between the individual and society, measured by the distribution of wealth, opportunities for personal activity, and social privileges.

NASW Code

A set of guidelines and ethical standards defined by the National Association of Social Workers.