The Present Value of $10,000 to Be Received Ten Years

question 83

Multiple Choice

The present value of $10,000 to be received ten years from now and earning a 12 percent return (rounded) is

• A)$2,200.
• B)$2,484.
• C)$3,160.
• D)$3,220.

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Definitions:

Employees

Individuals hired by a business or organization to perform work in exchange for compensation.

FICA Taxes

Taxes imposed on both employers and employees to fund Social Security and Medicare in the United States.

Retirement Benefits

Payments or other benefits provided to employees after they retire, such as pensions or health insurance.

FICA-OASDI

Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance, the tax withholding that funds Social Security and Medicare.