Your Uncle Has $375,000 and Wants to Retire

question 22

Multiple Choice

Your uncle has $375,000 and wants to retire.He expects to live for another 25 years and to earn 7.5% on his invested funds.How much could he withdraw at the end of each of the next 25 years and end up with zero in the account?

• A)$28,843.38
• B)$30,361.46
• C)$31,959.43
• D)$33,641.50
• E)$35,323.58

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Definitions:

Ultimate Attribution Error

The systematic error made when evaluating the behavior of a group member, attributing positive behaviors to situational factors and negative behaviors to inherent characteristics.

Ingroup Bias

The tendency to favor and extend loyalty to members of one's own group over those from different groups.

Outgroup Derogation

A psychological phenomenon where people tend to view and judge members of a group to which they do not belong less favorably than their own group (ingroup).

Self-Serving Attributions

A cognitive bias where individuals attribute their successes to internal or personal factors while attributing failures to external or situational factors.