Consider a $200 Deposit Earning 8 Percent Interest Per Year

question 60

Multiple Choice

Consider a $200 deposit earning 8 percent interest per year for three years. How much total interest is earned on interest (excluding interest earned on the original deposit) ?

• A) $3.94
• B) $24.00
• C) $48.00
• D) $51.94

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Definitions:

Instinct

An innate, typically fixed pattern of behavior in animals in response to certain stimuli.

Defense Mechanism

Psychological strategies brought into play by individuals, unconsciously, to protect themselves from anxiety or to provide a refuge from a situation with which they cannot currently cope.

Moral Basis

The foundational principles or beliefs that guide judgments about what is right or wrong, ethical or unethical.

Repression

A psychological defense mechanism where distressing thoughts, memories, or urges are unconsciously pushed out of the conscious mind.