You Deposit $1,000 Today and Want to Save $100 Each

question 18

Multiple Choice

You deposit $1,000 today and want to save $100 each month beginning one month from today. Your account earns a 5 percent annual interest rate. How long will it take you to accumulate $5,000?

• A) 29.3 months
• B) 35.7 months
• C) 42.6 months
• D) 52.1 months

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Definitions:

Attribution Theory

A psychological theory that seeks to explain how individuals infer the causes of their own and others' behavior, attributing them to internal dispositions or external situations.

Cognitive Dissonance Theory

A psychological theory that explains the discomfort that arises from holding two conflicting beliefs simultaneously, leading individuals to change their attitudes, beliefs, or behaviors to reduce the discomfort.

Role-Playing Theory

A theory that suggests individuals adopt certain behaviors or attitudes when they are assigned specific roles, influencing their social interactions and identity.

Racial Bias

A form of prejudice that results in the unjust favoring or disadvantaging of individuals based on race.