Assume You Are to Receive a 20-Year Annuity with Annual

question 30

Multiple Choice

Assume you are to receive a 20-year annuity with annual payments of $50.The first payment will be received at the end of Year 1,and the last payment will be received at the end of Year 20.You will invest each payment in an account that pays 10 percent.What will be the value in your account at the end of Year 30?

• A) $6,354.81
• B) $7,427.83
• C) $7,922.33
• D) $8,591.00
• E) $6,752.46

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Definitions:

Skill-Based Pay Programs

Compensation systems that determine pay levels based on the skills or knowledge an employee possesses, rather than their job title or position.

Profit-Sharing Program

A profit-sharing program is a company policy where employees receive a portion of the company's profits, typically as a bonus or addition to their regular salary, based on the company's performance.

Track Performance

The act of monitoring and evaluating the progress of an individual, group, or system towards a goal.

First Year

The initial period or the start phase of a specific time frame, such as a student's first year in university or an employee's first year at a job.