If We Want to Know the Value of Present-Day Assets

question 18

Multiple Choice

If we want to know the value of present-day assets at a future date,we can use:

• A)Present value computations.
• B)Annuity computations.
• C)Interest computations.
• D)Future value computations.
• E)Earnings computations.

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Definitions:

Unemployment Tax

A tax that employers pay to the government to fund unemployment benefits for workers who lose their jobs.

Social Security Tax

A tax that funds the United States' Social Security program, collected from both employees and employers.

Take-Home Pay

The amount of income that an individual actually receives after deductions, such as taxes and social security, have been subtracted from their gross salary.

SUTA Tax

A state-level tax that employers pay to fund their state's unemployment benefits programs, with rates and wage bases that can vary by state.