Question

To assess the current value of a lump-sum retirement benefit that will be received in 10 years, use the __________ calculation. A. present value of annuity B. present value of a single amount C. future value of an annuity D. future value of a single amount

Answer 1

Answer:

The correct answer is option B. "present value of a single amount".

Explanation:

In order to calculate how much a lump-sum retirement benefit is worth today, the interest rate must be applied to a present value a single time. Basically, the future value of something that is purchased today is estimated using this approach, since a dollar spent today has more value than a dollar that is going to be spent in the future.

Answer 2

B is your answer! Hope this helps!