Present and Future Value Tables of $1 at 3% Are

question 70

Multiple Choice

Present and future value tables of $1 at 3% are presented below:

-Sondra deposits $2,000 in an IRA account on April 15, 2018. Assume the account will earn 3% annually. If she repeats this for the next nine years, how much will she have on deposit on April 14, 2028?

• A) $20,600.
• B) $20,928.
• C) $23,616.
• D) $24,715.

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Definitions:

Price

The amount of money expected, required, or given in payment for something.

Omission Bias

The tendency to judge harmful actions as worse, or less moral, than equally harmful inactions (omissions).

Status Quo Bias

The tendency for individuals to prefer for things to stay the same by doing nothing or by sticking with a decision made previously.

Default Option

A pre-selected choice among a set of options that will be applied if no alternative is specified by the decision-maker.