If You Want to Know the Present Value of a Future

question 197

Multiple Choice

If you want to know the present value of a future payment received in one year, what formula can you use?

• A)Present value equals future payment times the current market rate of interest.
• B)Present value equals future payment divided by one plus the rate of interest.
• C)Present value equals one plus the rate of interest in decimals divided by future payment.
• D)Present value equals future payments times one plus the rate of interest.

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Definitions:

Comparable Worth

The concept that people should receive equal pay for work of equal value, regardless of the job title or position.

Graphic Rating Scale

A type of performance assessment that uses a checklist of traits or characteristics to evaluate performance.

Behaviourally Anchored Rating Scale

A performance appraisal method that uses specific examples of behavior to evaluate the performance of employees instead of relying on more subjective measures.

Bona Fide

Means genuine, real, or without the intention of deceit; often used to describe authentic documents or sincere intentions.