You Have Recently Accepted a One Year Employment Term by a Firm.The

question 36

Multiple Choice

You have recently accepted a one year employment term by a firm.The firm has given you the option of receiving your salary as a lump sum value of $30,000 at the end of the year or as 12 monthly payments of $2,400 starting one month after you start work.If your relevant discount rate is 2 percent per month,then which salary options would you prefer? (Ignore taxes,risk,and consumption needs. ) Choose the best answer.

• A) The lump sum payment,since it has the larger future value.
• B) Monthly payments,since you do not have to wait so long to receive your money.
• C) Either one,since they have the same present value.
• D) The lump sum payment,since it has the larger present value.
• E) Monthly payments,since it has the larger present value.

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Definitions:

Unconscious

Refers to the part of the human mind that is beyond awareness, holding thoughts, memories, and desires that are not accessible through conscious thought.

Resistance

The refusal to accept or comply with something; in a psychological context, it could refer to the opposition to change or the treatment process.

Maladaptive Habits

Behaviors or patterns that were initially adaptive but have become counterproductive to one’s well-being.

Group Therapy

The simultaneous treatment of several or more clients in a group.