If the Interest Rate Is 5%, the One-Year Discount Factor

question 92

Multiple Choice

If the interest rate is 5%, the one-year discount factor is equal to

• A)1.045.
• B)0.952.
• C)0.050.
• D)1.050.

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Definitions:

Seniority-Based Pay

A compensation system where an employee's wage or salary is determined by their length of service in the company.

Guaranteed Wages

A compensation strategy where employees are assured of a minimum amount of income, regardless of work hours or output.

Skill-Based Pay

A compensation system that rewards employees for their range of skills or depth of knowledge, rather than their job title.

Skill-Based Pay

A compensation system where employees are paid based on the skills, knowledge, and abilities they possess rather than their job title or position.