If You Start Making $115 Monthly Contributions Today and Continue

question 96

Multiple Choice

If you start making $115 monthly contributions today and continue them for six years, what is their present value if the compounding rate is 12 percent APR? What is the present value of this annuity?

• A) $5,512.90
• B) $5,633.10
• C) $5,882.30
• D) $5,941.12

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Definitions:

Moderator Variables

Variables that explain when, where, or for whom an effect is most likely to occur.

Random Assignment

A method in experimental design where participants are allocated to different groups on a random basis to reduce bias and increase the validity of the results.

Construct Validity

The extent to which a test or instrument measures the theoretical construct it's intended to measure.

Experimenter Bias

The possibility that the experimenter’s knowledge of the condition a particular participant is in could affect her behavior toward the participant and thereby introduce a confounding variable to the independent variable manipulation.