Jeff Has the Opportunity to Receive Lump-Sum Payments Either Now

question 15

Multiple Choice

Jeff has the opportunity to receive lump-sum payments either now or in the future. Which of the following opportunities is the best, given that the interest rate is 4% per year?

• A) one that pays $900 now
• B) one that pays $1080 in two years
• C) one that pays $1350 in five years
• D) one that pays $1620 in ten years

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Definitions:

EEOC

The Equal Employment Opportunity Commission, a U.S. federal agency responsible for enforcing laws against workplace discrimination.

Employment Contract

A legal agreement between an employer and an employee outlining the terms of employment, including duties, compensation, and duration.

Arbitrate

To arbitrate is to resolve a dispute through arbitration, where a neutral third party (the arbitrator) makes a binding decision, avoiding court litigation.

Written Demand

A formal request or claim, typically documented in writing, that seeks performance or action from another party.