Tishie Invests $3,000 Today at a 9% Rate of Return

question 174

Multiple Choice

Tishie invests $3,000 today at a 9% rate of return. She wants to have $24,000 to give to her granddaughter Kathy for college 16 years from now. Which one of the following statements is
Correct concerning Tishie's situation?

• A) Tishie will have the $24,000 when she wants it.
• B) Tishie would have to wait an additional ten years to have $24,000.
• C) Tishie would have to earn a 10% rate of return to have $24,000 in 16 years.
• D) Tishie will only have approximately $12,000 sixteen years from now.
• E) Tishie should plan on only giving Kathy $10,000 in sixteen years.

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Definitions:

Social Influence

The process by which individuals change their thoughts, feelings, or behaviors as a result of interaction with others, including conformity, compliance, and obedience.

Group Norms

Shared standards or expectations that guide the behavior of members within a group.

Change in Norms

denotes a shift in the accepted standards of behavior or beliefs within a society or group over time.

Obedience

The compliance with orders, commands, or laws from authority figures, often considered a form of social influence.