You've Just Received a Frantic Phone Call from One of Your

question 4

Essay

You've just received a frantic phone call from one of your cousins whose son will soon be "graduating" from elementary school. Your cousin has to decide where to send the boy next year and, of course, wants him to have the best education possible-within her financial constraints. Knowing you are studying adolescent development, she asks you what type of school you think is best and asks about school vouchers, wondering if they could help defray the potential costs of private schooling. How can you help her? What advice would you give your cousin about where to send her son to school, based on research findings?

Understand the critique of self-help books based on their reliance on psychobabble versus empirical evidence.

Recognize the implications of choice overload and its effects on decision making.

Comprehend the psychological challenges of modern life, including identity formation and value systems.

Acknowledge the paradox of technological advancement versus its impact on social and personal problems.

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Definitions:

Present Values

The value today of a future sum of money or cash flows, when calculated at an agreed-upon return rate.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Interest Rate

The percentage charged on borrowed money, or earned through deposited funds, over a period of time.

Lottery

A form of gambling that involves the drawing of numbers at random for a prize.