Worldatwork T7 Exam - Topic 2 Question 66 Discussion

Actual exam question for Worldatwork's T7 exam

Question #: 66
Topic #: 2

Company XYZ has a group of six employees who will be retiring in four years -- on the 31st of December. Each retiree will receive $125,000. Company XYZ's accountants must make provisions in their accounts for this. Calculate the present value of future payments based on a discount rate of 10%.

A$512,250

B$551,250

C$515,500

D$521,500

Show Suggested Answer

Suggested Answer: A

by Lavonda at Feb 28, 2023, 01:22 PM

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Dusti

7 months ago

$125k each? That's a hefty retirement package!

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Macy

7 months ago

Totally agree with MathWhiz, that sounds right!

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Florinda

8 months ago

Wait, how does the discount rate affect this calculation?

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Sean

8 months ago

I think the present value is around $515,500.

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Loreta

8 months ago

The total payout is $750,000 for six employees.

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Melissa

8 months ago

I think the answer is around $515,500, but I can't recall if I calculated the discount factor correctly.

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Ronny

8 months ago

I feel like I might have mixed up the present value calculations. Should I be using the annuity formula for this?

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Jeffrey

8 months ago

This seems similar to a practice question we did on retirement benefits. I think we used a discount rate of 10% there too.

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Pilar

8 months ago

I remember we discussed calculating present value in class, but I'm not entirely sure about the formula for multiple payments.

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Berry

8 months ago

Option C sounds promising, as the question mentions "hardware based" encryption. I'll double-check the details on that.

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Jolanda

9 months ago

I'm a little confused by the options here. I'm not sure if the Engagement Split, Behavioral Trigger, or Wait Until Event activity would be the best fit. I'll need to carefully read through the details of each one.

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Winifred

9 months ago

I remember we had a practice question about creating levels, and I think the 'Array tool' could also be relevant.

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