Conrad Has $10,000; He Is Considering Whether to (1) Invest

question 109

Multiple Choice

Conrad has $10,000; he is considering whether to (1) invest in a mutual fund with an 8% annual interest rate or (2) remodel his kitchen. If he remodels the kitchen, he will be able to sell his home for an additional $13,000 when he moves at the end of five years. Which of the following statements is (are) TRUE?
I. The net present value of remodeling the kitchen is -$1,152.42.
II. Conrad is better off investing his money in the mutual fund.
III. If Conrad invests in the mutual fund, his money will grow to $10,800 at the end of five years, making this a worse investment than the kitchen remodel.

• A) II
• B) I
• C) I and II
• D) I and III

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Definitions:

Exploitation And Class

The act of taking advantage of a lower class by an upper class, using their labor for personal gain without fair compensation.

Class Consciousness

The awareness individuals have of their social class and the associated interests, often leading to collective political action.

False Consciousness

A concept in Marxist theory concerning the way in which material, ideological, and institutional processes in capitalist society mislead members of the proletariat.

Antonio Gramsci's

Refers to the theories and ideas of Antonio Gramsci, an Italian Marxist philosopher and political theorist, known for his notions on cultural hegemony and the role of intellectuals in society.