You Are Scheduled to Receive $10,000 in One Year

question 80

Multiple Choice

You are scheduled to receive $10,000 in one year. What will be the effect of an increase in the interest rate on the future value of this cash flow?

• A) It will cause the future value to fall.
• B) It will cause the future value to rise.
• C) It will have no effect on the future value.
• D) The effect cannot be determined with the information provided.

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Definitions:

Gain-sharing

An incentive scheme that rewards employees for their contributions to a company's productivity improvement by sharing the financial gains.

Goal-sharing Plans

Incentive schemes where organizational objectives are shared with employees, and rewards are offered based on achieving these goals.

Fundamental Ways

Basic or essential methods or approaches that form the foundation of procedures, behaviors, or operations.

Work-life Balance

The equilibrium between professional work and personal life, where neither negatively impacts the other, promoting overall well-being and satisfaction.