Use the Information Given Below to Answer the Following Question(s)

question 11

Multiple Choice

Use the information given below to answer the following question(s) . Below is a payoff table that lists three mortgage options: $$\begin{array} { | l | l | l | l | } \hline & { \text { Outcome } } \\\hline \text { Decision } & \text { Rates Rise } & \text { Rates Stable } & \text { Rates Fall } \\\hline \text { 2-year ARM } & \$ 66,645 & \$ 43,650 & \$ 38,560 \\\hline \text { 5-year ARM } & \$ 62,857 & \$ 47,698 & \$ 42,726 \\\hline \text { 25-year fixed } & \$ 52,276 & \$ 52,276 & \$ 52,276 \\\hline\end{array}$$
-What is the maximum opportunity loss incurred for the 5-year ARM?

• A) $ 8,626
• B) $ 13,716
• C) $ 14,369
• D) $ 10,581

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Definitions:

Multiple Intelligences

A theory by Howard Gardner suggesting individuals possess various forms of intelligence, including linguistic, logical-mathematical, musical, spatial, bodily-kinesthetic, interpersonal, intrapersonal, and naturalistic.

Spatial Intelligence

The cognitive ability to visualize and manipulate objects and their spatial relations in the mind, important for solving spatial problems and navigating environments.

IQ Score

A measure of a person's intellectual abilities in relation to an average score for a large population, usually determined by an intelligence test.

Health Effects

The consequences or impacts of a specific behavior, lifestyle, condition, or intervention on physical and mental well-being.