Using a future value calculation can help to determine if other benefits to be received will compensate for less salary paid now.True false question.TrueFalse

Answer

True.

Using a future value (FV) calculation provides a way to assess the worth of current benefits compared to a lower salary. By calculating the future value of benefits such as retirement plans, stock options, or bonuses, an individual can determine whether these benefits will outweigh a reduced salary over time. The FV of these benefits, when compounded over a specified period at a certain interest rate, can show that even with a smaller current salary, the overall financial compensation may still be favorable in the long term. Thus, evaluating compensation packages holistically through future value calculations can guide informed decision-making regarding job offers.