Howard Is Saving for a Long Holiday

question 18

Multiple Choice

Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with an EAR of 7.5%. If this account pays interest every month then how much should he save from each monthly wage in order to have $10,000 in the account in two years' time?

• A) $388
• B) $161
• C) $166
• D) $4818

---

Definitions:

Deep Muscle Relaxation

A technique that involves the deliberate tensing and then gradual relaxing of muscle groups across the body to reduce stress and physical tension.

Flooding

A behavior therapy based on classical conditioning and used to treat phobias by exposing clients to the feared object or event (or asking them to imagine it vividly) for an extended period, until their anxiety decreases.

Time-out

A disciplinary technique that involves placing a child in a designated area for a short period to encourage reflection on inappropriate behavior.

Disruptive Classroom Behavior

Any student actions that interrupt the educational process, including but not limited to talking out of turn, inattention, or defiance.