Which of the Following Decisions Would Involve the Use of the Future

question 7

Multiple Choice

Which of the following decisions would involve the use of the future value of $1? Select all that apply.

• A) Your brother buys your car and offers to pay you $500 now or $1,500 in two years.
• B) You win a lawsuit and are offered a lump-sum payment today of $100,000 or $15,000 a year for 20 years.
• C) Your father and mother wish to deposit enough money on the date of your high school graduation to enable you to take a cruise that will cost $7000 when you graduate from college in 4 years.
• D) You want to have $1,000,000 in order to retire at age 55, but need to know how much you will need to deposit each year from now until your 55th birthday.

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Definitions:

Systems Development

The process of defining, designing, testing, and implementing a new software application or program.

Non-MIS Managers

Managers who are not specializing in Management Information Systems but still need to understand and use information technologies in their operational strategies.

Information

Data that has been organized or processed in a way that is meaningful to the recipient, used for making decisions or understanding a situation.

Meaning

The significance, definition, or explanation of a concept, word, or action.