When Calculating Fixed Retirement Payments,it Is Important Not to Forget

question 46

Multiple Choice

When calculating fixed retirement payments,it is important not to forget:

• A)changes in flexible interest rates.
• B)the decline in the payment's value due to inflation.
• C)the increase in the payment's value due to inflation.
• D)rates of return in other markets.
• E)none of the above

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Definitions:

Current Asset

An asset on the company's balance sheet that is expected to be sold, consumed, or converted into cash within one year or during the normal operating cycle of the business.

Patents

Legal rights granted to inventors that prevent others from making, using, or selling an invention for a certain period of time.

Marketable Securities

Financial instruments that can be easily converted into cash because they have high liquidity and short maturities.

Financial Leverage

Employing the use of debt to boost the prospective profits of an investment, which in turn escalates the risk of experiencing a loss.