What Will Be the Amount Owed at the End of One

question 80

Essay

What will be the amount owed at the end of one year if a borrower charges $100 on his/her credit card and doesn't make any payments during the year (assume the interest rate is 1.5% per month)?

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Definitions:

Expectancy-Value Theory

A psychological theory that explains how the motivation to engage in a behavior is influenced by the individual's expectation of success and the value they place on the success.

Motivated Behaviors

Actions that are initiated, guided, and maintained to fulfill a need or to achieve a particular goal.

Previous Goals

Objectives or desired outcomes that an individual or group has aimed for in the past.

Expectancy-Value Theory

A psychological theory which explains motivation and behavior as a combination of an individual's beliefs about the likelihood of success and the value they place on that success.