Which Statement Best Describes the Relationship Among Gender, Education, and Pay

question 50

Multiple Choice

Which statement best describes the relationship among gender, education, and pay?

• A) Women generally earn less than men do; however, when they have an advanced degree they earn the same amount as men.
• B) Men and women generally earn the same amount except when neither group has any higher education.
• C) Women consistently and in every category earn less than men with an equivalent amount of education.
• D) Men with a university degree earn approximately the same as women with an advanced degree.

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Definitions:

FV

Future Value, the value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Compound Interest

Interest calculated on the initial principal of a deposit or loan, as well as on the accumulated interest from previous periods.

Interest on Interest

The interest earned on the reinvestment of previous interest payments, commonly associated with compounding interest.

Reinvestment

The process of using dividends, interest, or any form of return earnings to purchase additional shares or units instead of receiving the earnings in cash.