Assume That the Desired Rate of Return Is 10% and That

question 43

Multiple Choice

Assume that the desired rate of return is 10% and that interest is compounded annually. Identify how much must be invested today to have $10,000 in 5 years and 10 years, respectively.

• A)$5,000; $1,000
• B)$3,791; $6,145
• C)$6,209; $3,855
• D)$1,000; $5,000

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Definitions:

Social-Cognitive Perspective

Views behavior as influenced by the interaction between people’s traits (including their thinking) and their social context.

Interactive Influences

The complex ways in which factors or variables interact with and influence each other.

Personality Traits

Characteristics and behaviors that are consistent over time and across situations, defining an individual.

Impact

The strong effect or influence one thing has on another, which can be observed in various contexts such as social, environmental, or economic areas.