The Present Value of $525 Received One Year from Today

question 24

Multiple Choice

The present value of $525 received one year from today, assuming an annual rate of return of 5 percent is

• A) $551.25
• B) $525
• C) $500
• D) none of the above

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Definitions:

Work Motivation

The drive or incentive that pushes individuals to attain work-related goals or engage in work tasks.

Gain-sharing Plan

is a system in which employees receive a share of the profits based on the performance of their company or department, intended to increase productivity and align employees' interests with those of the organization.

Performance Contributions

Efforts or inputs by employees that contribute positively to the goals and success of an organization.

Incentive Pay

A compensation strategy where employees earn additional pay based on performance metrics or achieving predefined goals.