Looking Far Ahead, Your Grandmother Makes a One-Time Payment of $200,000

question 11

Multiple Choice

Looking far ahead, your grandmother makes a one-time payment of $200,000 to obtain a monthly income for 20 years. Assuming a steady interest rate of 4% compounded monthly, what monthly payments will she receive?

• A) $833.33
• B) $1000.83
• C) $1117.96
• D) $1211.96

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Definitions:

Decertification Election

A formal process through which employees can vote to remove a union as their representative.

Closed-shop Agreement

A labor agreement requiring workers to be members of a union as a condition of employment, primarily used prior to being outlawed in the United States by the Taft-Hartley Act.

Taft-Hartley Act

A law enacted by the federal government in 1947 within the United States, aimed at constraining the operations and capabilities of labor unions.

Closed-shop Agreements

Closed-shop agreements are labor contracts requiring employers to hire only union members, typically to ensure worker unity in negotiations and workplace standards, though they are restricted or illegal in some jurisdictions.