If John Borrowed $30 000 from His Mother at a Rate

question 49

Multiple Choice

If John borrowed $30 000 from his mother at a rate of 5% p.a.compounded quarterly for 5 years,what is the dollar value of the interest on the loan?

• A)$ 8 461.12
• B)$38 461.12
• C)$ 7 500.00
• D)$ 8 288.45
• Feedback; ????=30,0001+0.054
• The interest is the future value of the loan minus the initial amount that was borrowed.

---

Definitions:

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes.

Groupthink

A phenomenon where the desire for harmony in a decision-making group overrides a realistic appraisal of alternatives, often leading to poor decisions.

Conformity

involves aligning one's attitudes, beliefs, behaviors, and norms to those of a group or society.

Status

The rank an individual holds within a group.