Homer Has Been Saving to Buy a New Car in Five

question 23

Multiple Choice

Homer has been saving to buy a new car in five years and expects that the car of his dreams will cost $35,000. If the interest rate is 8 percent per year, how much money should Homer have in his bank account today in order to have enough money to buy the car in 5 years?

• A) $1,852.28
• B) $22,055.94
• C) $23,820.41
• D) $25,726.04

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Definitions:

Test Administration Error

Mistakes or inconsistencies that occur during the administration of a test, potentially affecting the validity and reliability of the test results.

Test Taker Variables

Factors related to the individual taking a test that can influence their performance, such as anxiety, motivation, and prior knowledge.

IQ Test

A standardized assessment designed to measure human intelligence and cognitive abilities in comparison to the general population.

Reliability Coefficient

The reliability coefficient is a statistical measure that indicates the consistency or stability of scores obtained from a test or measurement tool over time.