Which Potential Problem Can Occur the Rational Method Is Used

question 47

Multiple Choice

Which potential problem can occur the rational method is used?

• A)​People are not necessarily very good at logical reasoning.
• B)​While useful for minor issues, this method is inadequate for important matters.
• C)There is no mechanism for testing the accuracy of the claims.
• D)​This method typically requires preconceived assumptions.

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Definitions:

Compounded Monthly

Interest calculated on the initial principal and also on the accumulated interest from previous periods on a monthly basis.

RRSP

Registered Retirement Savings Plan, a savings account, registered with the Canadian government, that defers income taxes on retirement savings until withdrawal.

Accumulate

The act of gathering or collecting over a period of time, often resulting in an increase in quantity.

Ordinary Annuity

An annuity where the payments are made at the end of each period for a fixed length of time.