Sharon Has Always Insisted That She Can Study Effectively While

question 2

Multiple Choice

Sharon has always insisted that she can study effectively while watching television. She tends to look up from her studies every few minutes to see what is happening on her TV program. Why is this an inefficient study technique?

• A) She is constantly switching her attention from her studies to the TV and is losing most of her study time.
• B) Every time she switches her attention to the TV, she moves to a lower level of concentration, so she is spending too little time in deep concentration.
• C) Everyone knows that you simply can't do two things at one time.
• D) It would be more efficient to switch back and forth from study to TV every ten minutes instead.

---

Definitions:

Present Value Factors

Mathematical factors used to calculate the present value of future cash flows, taking into account the time value of money and discount rates.

Maturity Value

The amount payable to the holder of a financial instrument at its maturity date, including the principal and any remaining interest.

Stated Interest Rate

The annual interest rate declared on a loan or financial instrument, not including any fees or compounding of interest.

Effective Yield

The total yield of a bond, taking into account annual interest payments and the bond’s price fluctuation.