Imagine That a Young Child Is Presented with a Novel

question 126

Multiple Choice

Imagine that a young child is presented with a novel word, "encyclopedia," when her grandmother says, "Oh, look at the encyclopedia." In front of the child are two objects, a bright pink-covered book-"book" is a word the child already knows-and a green onion, an object the child has never seen before. The child is MOST likely to make the assumption that the novel word refers to the

• A)book.
• B)pages of the book.
• C)onion.
• D)colour of the onion.

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Definitions:

Outstanding Principal

The remaining amount of money owed on a loan or mortgage, not including interest, that has yet to be repaid.

Equal Payments

Regular payments of the same amount made over a period of time.

Compounded Annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods once a year.

Interest

The fee or rent that lenders charge for the use of their money.