You Have a Contract with Someone Who Has Agreed to Pay

question 22

Multiple Choice

You have a contract with someone who has agreed to pay you $20,000 in four years.She offers to pay you now instead.For which of the following interest rates and payments would you take the money today?.

• A)8 percent,$15,000
• B)7 percent,$16,000
• C)6 percent,$17,000
• D)All of the above are correct.

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Definitions:

Equity Theory

A theory of motivation that suggests employees are motivated to achieve fairness in the distribution of rewards and resources within the workplace.

Equity Sensitivity

The tendency for people to have different preferences for equity and to react differently to perceptions of inequity.

Transferring To Another Job

The process of moving an employee from one position to another within an organization, usually to match skills with job requirements or for developmental purposes.

Benevolents

Individuals or entities that are disposed to doing good and acting with kindness or charity.