Paul Wants to Accumulate $14,500 in Order to Make the Down

question 29

Multiple Choice

Paul wants to accumulate $14,500 in order to make the down payment for a new condo. Today he can start investing $2,500 annually in an investment account that pays 10 percent interest compounded annually. How long would it take him to have enough money to make the down payment?

• A) 3.50 years
• B) 5.90 years
• C) 6.10 years
• D) 4.80 years
• E) 7.60 years

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Definitions:

Problem-focused Coping

A strategy for managing stress by directly tackling a stressful situation to alleviate or eliminate its source.

Emotion-focused Coping

A coping strategy where individuals reduce stress by managing the emotions that the stressor invokes rather than addressing the problem causing the stress.

Distraction

A thing that prevents someone from giving full attention to something else, often leading to errors or accidents.

Reappraisal

A cognitive process in which an individual changes their emotional response to a situation by altering their interpretation of that situation.