Rudy Was Working as an Applications Developer in a Software

question 75

Multiple Choice

Rudy was working as an applications developer in a software firm in San Jose. His employment contract was for three years at $100,000 a year. Two years into the contract, Rudy's employer fired him as a part of downsizing. Which of the following jobs could Rudy take in order to mitigate damages?

• A) Any job that offers $100,000 or more a year.
• B) Another software applications developer job, irrespective of the salary.
• C) A job in any software firm in any part of the country.
• D) An applications developer job in San Jose for $100,000 a year or more.

---

Definitions:

Nominal Interest Rate

The interest rate before adjustments for inflation, as opposed to the real interest rate.

Periodic Interest Rate

The interest rate applied to a loan or investment for a specific period, usually shorter than a year.

Compound-Interest GIC

A Compound-Interest Guaranteed Investment Certificate is a type of investment where the interest earned is reinvested, allowing the initial investment to grow at an exponential rate over time due to the compound interest effect.

Maturity Value

The total amount payable to an investor at the end of a fixed term investment, including both the original principal amount and the interest earned.