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Gordon,an Employee,is Provided Group Term Life Insurance Coverage Equal to Twice

question 21

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Gordon,an employee,is provided group term life insurance coverage equal to twice his annual salary of $125,000 per year.According to the IRS Uniform Premium Table (based on Gordon's age) ,the amount is $12 per year for $1,000 of protection.The cost of an individual policy would be $15 per year for $1,000 of protection.Since Gordon paid nothing towards the cost of the $250,000 protection,Gordon must include in his 2017 gross income which of the following amounts?

Understand the concept of the time value of money and its importance in financial decision-making.
Calculate the present value and future value of cash flows using various interest rates.
Demonstrate knowledge of the effects of changes in the discount rate on the present value of cash flows.
Identify the factors influencing the selection of discount rates in investment decisions.

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