Worldatwork Exam T7 Topic 3 Question 104 Discussion

Actual exam question for Worldatwork's T7 exam

Question #: 104
Topic #: 3

Which of the following should be used when discounting a benefit in order to determine the present value of the defined benefit obligation and the current service cost?

AFair value

BTime value of money

CNet present value

DThe corporate vision

Show Suggested Answer

Suggested Answer: C

by Kiley at Dec 08, 2024, 02:43 PM

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Raul

2 days ago

A and C both sound like they could be right, but B specifically mentions the 'time value of money' which is key for this type of calculation.

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Caren

4 days ago

I agree with Maia, time value of money is essential for discounting benefits.

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Maia

18 days ago

B) Time value of money should be used.

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Sharan

19 days ago

I'm pretty sure the answer is B. The time value of money is a fundamental concept in determining the present value of future benefits.

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Valentin

3 days ago

So, we can use it to calculate the present value of the defined benefit obligation and current service cost.

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Sabra

5 days ago

Yes, it helps us determine the present value of future benefits accurately.

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Louvenia

8 days ago

I think you're right, the time value of money is crucial for discounting benefits.

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