Estimation of the Present Value of Lost Current and Future

question 10

Multiple Choice

Estimation of the present value of lost current and future income must consider

• A)the expected length of working life.
• B)any possible future raises.
• C)any risk of unemployment.
• D)all of the options are correct.

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Definitions:

Simple Interest

Interest reckoned only on the initial capital, disregarding compounded sums.

Yield

The income return on an investment, such as the interest or dividends received, expressed as a percentage of the investment's cost.

GICs

Guaranteed Investment Certificates, a type of Canadian investment that offers a fixed return rate over a predetermined period.

Simple Interest

Interest determined exclusively on the original amount, or on the remaining amount of the principal that is not yet paid.