You Have Set a $100,000 Goal for a College Fund

question 1

Multiple Choice

You have set a $100,000 goal for a college fund for your newborn child. You plan on having a fixed amount taken from your salary each month to meet this goal. The calculation to determine the monthly amount is called

• A) planning and budgeting.
• B) present value of an annuity.
• C) future value of an annuity.
• D) future value of a series of single payments.

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Definitions:

Mental Energy

The capacity of the mind to engage in cognitive activities and processes, such as thinking, problem-solving, and focusing attention.

Psychoanalytic Thinking

A psychological perspective that emphasizes the influence of the unconscious mind on behavior, originating from the work of Sigmund Freud.

Processing Ability

The capacity of an individual to perceive, analyze, and respond to information in their environment.

Freud

Sigmund Freud was an Austrian neurologist known as the founding father of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.