A Student Received a Phone Call in Which He Learned

question 6

Multiple Choice

A student received a phone call in which he learned that his father had unexpectedly died of a heart attack at the age of 45. Instead of crying or showing a sad facial expression, the student's face took on an angry expression and he slammed down the phone. The MOST plausible reason for this reaction is that the student:

• A) appraised the situation as shocking and showed the emotion of surprise.
• B) remembered that the last time he talked to his father they had an argument.
• C) did not like being told this bad news over the phone.
• D) appraised the situation as unfair that he lost his father at such an early age.

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Definitions:

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today, often calculating the effects of interest.

Equal Annual Installments

A method of repaying a loan in which the borrower pays the lender the same amount of money each year until the loan, including interest, is fully paid off.

Compounded Monthly

Interest on an investment or loan calculated on a monthly basis, where the interest earned each month is added to the principal, and future interest is based on this new amount.

Corporate Bond Fund

A corporate bond fund is an investment fund that focuses on investing in the corporate debt securities of varying credit ratings and maturities.