If You Had $2,000 in a Savings Account That Paid

question 24

Multiple Choice

If you had $2,000 in a savings account that paid 4% interest compounded annually, what would be the real value of your savings after two years if the annual inflation rate were 2%?

• A)$2,040
• B)$2,081
• C)$2,160
• D)$1,163
• E)$2,247

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Definitions:

Physical Activity

Physical activity refers to any bodily movement produced by skeletal muscles that requires energy expenditure, including activities undertaken while working, playing, carrying out household chores, traveling, and engaging in recreational pursuits.

Attention

The cognitive process of selectively concentrating on one aspect of the environment while ignoring other stimuli.

External Locus of Control

The belief that one's successes or failures result from external factors beyond one's control, as opposed to one's own efforts.

Decremental

Characterized by a gradual reduction or decline in quality, quantity, or size.