You Are Scheduled to Receive Annual Payments of $10,000 for Each

question 128

Multiple Choice

You are scheduled to receive annual payments of $10,000 for each of the next 25 years.Your discount rate is 8.5 percent.What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?

• A)$8,699
• B)$9,217
• C)$9,706
• D)$10,000
• E)$10,850

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Definitions:

Bureaucratic Control

Control accomplished through rules and routines.

Standardized Rules

Established and uniform procedures and criteria that apply to all relevant parties in a given context to ensure consistency and fairness.

Scripted Greetings

pre-written messages used in customer service settings to ensure consistency and efficiency in communication with clients.

Output Control

A management process where actual output is measured, compared to desired output, and adjustments are made as necessary to achieve objectives.