If We Wish to Accumulate $8,000 by the End of 4

question 76

Multiple Choice

If we wish to accumulate $8,000 by the end of 4 years,how much should the annual payments be if we receive an interest rate of 10% on our investments? The first payment is made at the end of each year.

• A) $1,379.24
• B) $1,567.06
• C) $1,723.77
• D) $2,000.00

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Definitions:

Attention Hypothesis

is the theory suggesting that the focus and allocation of cognitive resources towards certain stimuli or tasks influence perception and information processing.

Automatization

the process through which tasks become automatic after extensive practice, requiring less cognitive effort.

Attentional Learning

The process by which learning occurs as a function of where and how an individual focuses their attention.