If You Are Able to Earn an 8% Rate of Return

question 4

Multiple Choice

If you are able to earn an 8% rate of return what amount would you need to invest to have $30000 one year from now?

• A) $27747
• B) $27778
• C) $27273
• D) $29700

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Definitions:

Schema

Cognitive structures that help individuals organize and interpret information, based on knowledge gained from past experiences.

Assimilated

The process by which individuals or groups of differing culture come to resemble those of the dominant group, sometimes including the adoption of language, customs, and values.

Accommodated

Adjusted or modified to meet specific needs or requirements.

Birth Cohort

A group of individuals born during the same time period, experiencing certain social and historical events at similar stages of life.