Sipho Just Signed a Long-Term Lease on a Townhouse in Johannesburg

question 61

Multiple Choice

Sipho just signed a long-term lease on a townhouse in Johannesburg (near Sandton) that requires him to make equal monthly payments for the next five years.The payments Sipho has promised to make represent a(n) __________ for the landlord.

• A) ordinary annuity
• B) annuity due
• C) series of uneven cash flows
• D) perpetuity

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Definitions:

Collective Bargaining

The negotiation process through which management and unions reach an agreement about compensation, working hours, and working conditions for the bargaining unit.

Compensation

The total amount of the monetary and non-monetary pay provided to an employee by an employer in return for work performed as required.