Jason Is Considering One of Two Options

question 101

Multiple Choice

Jason is considering one of two options. The first option is to receive $500 per month for the first 3 years and $850 per month for the last 2 years based on an interest rate of 3.3% compounded semi-annually. The second option is to receive $35,000 now. Determine which option should be chosen to maximize benefits now.

• A) First option provides benefit of $35,684.42 compared to $35,000 for second
• B) First option provides benefit of $37,464.27 compared to $35,000 for second
• C) First option provides benefit of $38,861.85 compared to $35,000 for second
• D) Second option provides a benefit of $35,000 compared to $34,684.42
• E) Second option provides a benefit of $35,000 compared to $33,464.27

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Definitions:

Behaviorist

A psychological perspective focusing on observable behaviors and the external stimuli that trigger them, while minimizing the importance of mental states or inner psychological processes.

Evolutionary Developmental

An interdisciplinary field of study combining aspects of evolutionary biology with developmental biology to understand the developmental processes that led to the evolution of complex organisms.

Cognitive-Developmental Theory

A theory that explains how children's cognitive abilities evolve and develop through distinct stages over time, pioneered by Jean Piaget.

Cognitive-Developmental Stages

The theory proposed by Jean Piaget that outlines how children's ability to think and understand progresses through distinct stages as they grow older.