Suppose Interest of 5% Each Year for Two Years Can

question 156

Multiple Choice

Suppose interest of 5% each year for two years can be earned on $1,000 saved today with no risk. What is the least amount a person would need to have a 50% chance of winning to be willing to face a 50% chance of losing $1,000 today and be considered risk averse?

• A)$907.03 to be paid in two years
• B)$1,000.01 to be paid in two years
• C)$1,100.01 to be paid in two years
• D)$1,102.51 to be paid in two years

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Definitions:

Sexual Transmission

The process by which infections or diseases are spread through sexual contact between individuals.

MSM

An acronym for "men who have sex with men," used to describe a behavior that impacts public health without specifying sexual orientation.

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The amount of a specific virus present in a blood volume, often used to monitor the severity or progression of a viral infection.

HIV Diagnosis

The process of testing and confirming the presence of the HIV (Human Immunodeficiency Virus) in an individual.