You Are Promised That When You Retire from Your Current

question 16

Multiple Choice

You are promised that when you retire from your current job, in 40 years time, you will receive a gold watch valued at $1 000. If you can invest money at 5% annual interest, what is the present worth of this promise?

• A)$142
• B)$156
• C)$167
• D)$211
• E)$231

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Definitions:

Representativeness Heuristic

A mental shortcut that involves making judgments about the probability of an event under uncertainty, based on how similar it is to our stereotypes of similar occurrences.

Overregularization

This refers to a common phenomenon in language learning where individuals apply regular grammatical rules to words that are exceptions, often observed in children mastering a language.

Adaptive Problems

Challenges that require adjustment or change in behavior or strategies to effectively address them.

Evolutionary Psychologists

Researchers who study how evolutionary principles, such as natural selection and adaptation, influence human thoughts, feelings, and behaviors.