Sherry Says That She Requires a 3% Rate of Interest

question 14

Multiple Choice

Sherry says that she requires a 3% rate of interest in order to lend you some money. This implies that for Sherry the present value of $100 to be received one year from today is

• A)$97.09.
• B)$97.
• C)$100.03.
• D)$103.

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Definitions:

Pay Survey

A research tool used to collect and analyze compensation data from multiple organizations to determine market trends, establish pay standards, and ensure competitive salary packages.

External Equity

An aspect of compensation management that ensures employees' pay is competitive with the rates offered by other organizations in the same industry for similar positions.

Compensation Rates

The standard amounts of money or benefits paid to employees in exchange for their labor or services.

Pay Secrecy

Policies or practices that discourage or prohibit employees from discussing their salaries with co-workers.