What Is the Present Value of 10 Annual Payments of $500

question 96

Multiple Choice

What is the present value of 10 annual payments of $500 at a discount rate of 12%?

• A) $1,332
• B) $1,761
• C) $1,840
• D) $2,825
• E) $3,040

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Definitions:

Job Evaluation System

A methodical process used by organizations to determine the relative value or complexity of job roles for the purpose of establishing fair pay rates.

Excessive Overlaps

Situations in which responsibilities, activities, or areas of operation between roles or projects significantly overlap, leading to inefficiency or conflict.

Compensable Factor

Elements or aspects of a job that are used to determine its value and thereby influence the compensation provided for that job.

Working Conditions

The environment in which an employee works, including aspects such as safety, hours, physical conditions, and any equipment used.