Jonathan, a Student at Local University, Has Decided to Major

question 37

Essay

Jonathan, a student at Local University, has decided to major in accounting because his goal is to become an FBI agent.Jonathan knows that accounting is one of the entry programs that qualify an applicant for a special agent career.As most students do, Jonathan wants to purchase a nice car when he graduates in five years with his master's degree.Because his expected salary will be good, he wants a high-performance sports car.He has found the car of his dreams for $58,000.Jonathan's parents have promised him a graduation present of $25,000 when he finishes his master's degree.
Required:
a.Calculate how much money Jonathan needs to deposit in his savings account today to be able to pay cash for the car upon graduation, assuming that his parents contribute what Jonathan expects.Jonathan can earn 8% on his deposit, compounded annually.
b.Calculate how much money Jonathan needs to deposit in his savings accountant today to be able to pay cash for the car upon graduation, assuming that his parents contribute what Jonathan expects.Jonathan can earn 8% on his deposit, compounded semi-annually.

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Definitions:

Implicit Personality Theory

Your unique set of beliefs and hypotheses about what people are like.

Impression Formation Theory

Theory that explains how you develop perceptions about people and how you maintain and use those perceptions to interpret their behaviors.

Correspondence Inference Theory

A psychological theory that explains how and why people draw inferences about the dispositional attributes of others based on observed behavior and its consequences.

Self-Serving Bias

Tendency to perceive our own behavior as more positive than others’ behavior.