If You Want to Know the Present Value of a Future

question 197

Multiple Choice

If you want to know the present value of a future payment received in one year, what formula can you use?

• A)Present value equals future payment times the current market rate of interest.
• B)Present value equals future payment divided by one plus the rate of interest.
• C)Present value equals one plus the rate of interest in decimals divided by future payment.
• D)Present value equals future payments times one plus the rate of interest.

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Definitions:

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The degree to which an individual identifies psychologically with their job and considers their perceived performance level important to self-worth.

Worker Motivation

The level of energy, commitment, and creativity that a company's workers bring to their jobs.

Job Satisfaction

The level of contentment employees feel about their work, which can affect their performance and overall well-being.

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Sets of implicit rules that specify proper sexual behavior for a person in a given situation, varying with the person’s gender, age, sexual orientation, religion, social status, and peer group.