Suppose You Win a Small Lottery and You Are Given

question 122

Multiple Choice

Suppose you win a small lottery and you are given the following choice: You can (1) receive an immediate payment of $10,000 or (2) three annual payments, each in the amount of $3,600, with the first payment coming one year from now, the second two years from now, and the third three years from now. You would choose to take the three annual payments if the interest rate is

• A)2 percent, but not if the interest rate is 3 percent.
• B)3 percent, but not if the interest rate is 4 percent.
• C)4 percent, but not if the interest rate is 5 percent.
• D)5 percent, but not if the interest rate is 6 percent.

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Definitions:

Human Resource Division

The department within an organization that is responsible for managing employee-related functions, such as recruitment, training, and benefits.

Top Management

Consists of the highest-level executives of an organization, responsible for strategic decisions and overall direction.

Training Dollars

Funds allocated by an organization for the development and education of its employees.

Introduction Programs

Organized initiatives designed to familiarize new employees or participants with the policies, procedures, and culture of an organization or program.