You Have the Choice of Two Equally Risk Annuities,each Paying

question 60

Multiple Choice

You have the choice of two equally risk annuities,each paying $5,000 per year for 8 years.One is an annuity due and the other is an ordinary annuity.If you are going to be receiving the annuity payments,which annuity would you choose to maximize your wealth?

• A) the annuity due
• B) the ordinary annuity
• C) Since we don't know the interest rate, we can't find the value of the annuities and hence we cannot tell which one is better.
• D) either one because they have the same present value

Recognize the limitations and requirements for the enforceability of oral agreements in contract law.

Understand the parol evidence rule and its exceptions.

Identify the types of contractual rights that are non-assignable.

Discern the types of contracts that require written evidence under the statute of frauds.

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Definitions:

Labor Relations

The relationships and interactions between employers, employees, and their representatives, often within the context of negotiation and collective bargaining.

Collective Bargaining Process

The procedure where employers and representatives of employees negotiate labor contracts concerning wages, hours, benefits, and working conditions.

Collective Bargaining Agreements

Legally binding agreements between employers and a group of employees, often negotiated by a union, that specify wages, hours, and other terms and conditions of employment.

Collective Bargaining

The process by which employers and unions negotiate employment terms such as wages, hours, and conditions.