You Have Been Told That You Need $21,600 Today in Order

question 25

Multiple Choice

You have been told that you need $21,600 today in order to have $100,000 when you retire 42 years from now. What rate of interest was used in the present value computation? Assume interest is compounded annually.

• A) 3.72 percent
• B) 3.89 percent
• C) 4.01 percent
• D) 4.23 percent
• E) 4.28 percent

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Definitions:

Loose Cultures

Societal or organizational cultures that have fewer rules, more tolerance for deviation, and a wider acceptance of individual behavior variations.

Expected Behaviours

The actions or reactions that are anticipated in a particular context or role, often based on social, cultural, or organizational norms.

Cultural Distance

The extent to which cultures differ in values.

Work Centrality

The importance of work in an individual's life and its role in defining self-worth, identity, and social status.