How Much Money Do You Need Today to Ensure That

question 19

Multiple Choice

How much money do you need today to ensure that you will have $16,000 in 4 years, assuming you can earn 6% on your savings?

• A) $10,674.
• B) $11,274.
• C) $11,674.
• D) $12,674.

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Definitions:

Familiarity

A general sense that a certain stimulus has been encountered before.

Proximity

In perception, the closeness of two figures. The closer together they are, the more we tend to group them together perceptually.

Attraction

A force or factor that draws individuals together, leading to friendship, romance, or other forms of close relationships.

Companionate

Related to a type of love characterized by deep affection, mutual respect, and long-term commitment, rather than passion or physical attraction.