Case-Based Critical Thinking Questions

question 20

Multiple Choice

Case-Based Critical Thinking Questions
Case 3-2
Pamela is getting ready to purchase her first condominium.To get ready for the mortgage process,she gathers her Excel spreadsheets that contain all of her financial information.
-Pamela has been told by one bank that if approved,she will have to pay a compound interest.This means that ____.

• A) interest paid is equal to a percentage of principal for each period that the money has been lent
• B) interest paid is calculated on the principal and any previous interest payments that have been added to that principal
• C) interest paid is equal to a .05 percent of principal for each period that the money has been lent
• D) interest paid is calculated on the principal and any late fees that have been added to that principal

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Definitions:

Outgroup

A social group to which an individual does not identify or belong, often viewed with prejudice or hostility.

Discontinuity Effect

The phenomenon where groups exhibit more competitiveness and less cooperation than individuals when negotiating.

Social Dominance Theory

A social psychological theory suggesting that societies maintain hierarchical group relationships, with dominant groups exploiting or oppressing subordinate ones.

Great Violence

Intense or extreme physical force used to harm others or cause destruction, often associated with aggression or conflict.