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vodka [1.7K]
3 years ago
6

Time value of money is an important aspect of money management. Why is it important to know what interest rates, terms of an agr

eement, and present value are in relationship to future value when making financial decisions?
In perspective, if you won a $25 million lottery, would you take the lump sum prize of $17 million immediately or the annual annuity of $1 million dollars for the next 25 years?
Your response should be based on what you know about present value and future value as well as include your personal opinion.
Business
1 answer:
Serjik [45]3 years ago
3 0

Answer:

Present value is the value of future payments in the present and it is very important to use this when making financial decisions mainly because of inflation.

Inflation weakens money so future values are almost always less than present values so when making a decision it is the present value that needs to be factored not the future value as that is less than the present value in value.

Inflation is factored into the calculation of interest rates so they can be used to discount future values to present values. They are therefore important to know because without them we cannot make a comparison between future and present values.

For one to decide between taking a payment now vs the future, they need to discount that future value to the present to see if it is larger than the present value after which they can make their decision.

If you won a $25 million lottery and you had to choose between a lump sum of $17 million now or $1 million every 25 years, you should discount the $1 million every 25 years to the present using a relevant interest rate. If it is larger than the lump sum now, take it and if it isn't, leave it.

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Last summer, Fabia applied for three jobs. The first required a resume, but nothing else. The second required both a resume and
Anna35 [415]

Answer:

The rejection by the third job

Explanation:

Resumes

This is simply known as the normal means or method of an introduction to potential (assumed) employer. it containsmore relevant/more accurate information about the person and it is resume used as a basis for deciding which candidates to investigate further. The resume of candidates shows if identifies candidates meeting requirements.

There are various steps taken by the selection process in every organizations during employment exercise. They includes

1. Screening applications and resumes

2. Testing and reviewing work samples

3. Interviewing candidates

4. Checking references and background

5. Lastly, making a selection

The third one will be the most painful one to her as she has put more work into it than the rest.

6 0
3 years ago
Many times when working with a new manager, Amy, a successful small-business owner, asks the manager, "What management method do
Mademuasel [1]

Answer:

False

Explanation:

Contingency approach, also known as situational approach, is a concept in management stating that there is no one universally applicable set of management principles to organizations. Organization's are individually different, face different situations, and require different ways of managing.

3 0
3 years ago
A company that continually adds more features to an existing product to try to appeal to more customers may end up overwhelming
Sloan [31]

It can be noted that when the addition of more features to an existing product overwhelm the customers, it is known as feature fatigue.

<h3>What is feature fatigue?</h3>

Feature fatigue simply means when consumers shy away from products that appear to be rich in features.

This occurs ehen a company continually adds more features to an existing product to try to appeal to more customers may end up overwhelming customers and create an unintended consequence.

Learn more about fatigue on:

brainly.com/question/948124

5 0
3 years ago
Predictable books are useful in the early childhood classroom because they
Feliz [49]
Help the child see that they themselves can answer what will happen if they come across a situation like so
7 0
3 years ago
A recent national survey of U.S. adults revealed that 52% reported that they considered or made a career decision, such as looki
Maslowich

Answer:

The options for this answer are the following:

A. Lack of medical coverage

B. Sexual harassment at workplace

C. Stress in the workplace

D. Lack of upward mobility

The correct answer is C. Stress in the workplace .

Explanation:

Occupational stress is a type of stress associated with the scope of work that can be punctual or chronic, although most cases respond to the second type mentioned.

Positive stress (eustress) refers to when the stress response occurs in an adaptive way, the consequences of such response do not harm the integral health of the subject and its duration is coupled with the duration of the stress stimulus, eg, the response of stress that is triggered during your first day of work is adaptive (positive stress) because it implies that you have to be alert to attend to new stimuli (tasks, bosses, colleagues, company procedure, etc.).

When does this response cease to be adaptive and therefore can it become negative stress? Well, if this stress lasts more than a month, the response intensifies over time and begins to interfere with the worker's health (insomnia, tachycardia, anxiety, depression, among others) appear, it would be a case of negative work stress and measures should be taken.

8 0
4 years ago
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