Isaac and Faith Both Want to Have $5,000 in Three

question 161

Multiple Choice

Isaac and Faith both want to have $5,000 in three years. Isaac expects to earn 8% on his investments and Faith expects a 7% rate of return. Which one of the following statements is correct concerning the amount of money they each need to invest today?

• A) Faith needs to deposit $112.33 more than Isaac today.
• B) Faith needs to deposit $173.33 more than Isaac today.
• C) Isaac needs to deposit $3,699.16 today.
• D) Faith needs to deposit $3,081.49 today.
• E) Both Faith and Isaac should deposit $3,969.16 today.

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Definitions:

Social Psychologists

Researchers who study how individuals think about, influence, and relate to one another within a societal context.

Personnel Psychologists

Psychologists specialized in the study of workplace behavior, focusing on employee recruitment, selection, performance, and training.

Operant Conditioning

A paradigm in learning where the expression of a behavior is directed by securing rewards or enacting punishments.

360-Degree Feedback

A performance appraisal method that gathers feedback from a worker's supervisors, peers, subordinates, and sometimes clients.