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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%.
Suggested Answer: A
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12 comments · newest first
DU
Dusti
12 months ago
$125k each? That's a hefty retirement package!
MA
Macy
12 months ago
Totally agree with MathWhiz, that sounds right!
FL
Florinda
1 year ago
Wait, how does the discount rate affect this calculation?
SE
Sean
1 year ago
I think the present value is around $515,500.
LO
Loreta
1 year ago
The total payout is $750,000 for six employees.
ME
Melissa
1 year ago
I think the answer is around $515,500, but I can't recall if I calculated the discount factor correctly.
RO
Ronny
1 year ago
I feel like I might have mixed up the present value calculations. Should I be using the annuity formula for this?
JE
Jeffrey
1 year ago
This seems similar to a practice question we did on retirement benefits. I think we used a discount rate of 10% there too.
PI
Pilar
1 year ago
I remember we discussed calculating present value in class, but I'm not entirely sure about the formula for multiple payments.
BE
Berry
1 year ago
Option C sounds promising, as the question mentions "hardware based" encryption. I'll double-check the details on that.
JO
Jolanda
1 year 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.
WI
Winifred
1 year ago
I remember we had a practice question about creating levels, and I think the 'Array tool' could also be relevant.