You Need to Have $35,000 on Hand to Buy a New

question 121

Multiple Choice

You need to have $35,000 on hand to buy a new Lexus five years from today.To achieve that goal,you want to know how much you must invest today in a certificate of deposit guaranteed to return you 9% per year.To help determine what today investment is sum must be,you will use:

• A)present value factors
• B)future value factors
• C)present value factors of an annuity
• D)future value factors of an annuity

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Definitions:

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, involving biological, emotional, social, and cognitive forces that activate behavior.

Incentive Theories

Theories in psychology focused on understanding how external rewards motivate behaviors and drive human actions.

Drive Theories

Psychological theories suggesting that behavior is motivated by the desire to reduce internal tension caused by unmet biological needs.

Motivation

The psychological factors or driving forces that compel or prompt an individual to act in a certain manner.