Glen Wants to Take a Holiday That Costs $8,850, but Currently

question 29

Multiple Choice

Glen wants to take a holiday that costs $8,850, but currently he only has $2,750 saved. If he invests this money at 8 percent interest compounded annually, how long will he have to wait to take his holiday?

• A)12.36 years
• B)16.25 years
• C)15.19 years
• D)13.52 years
• E)14.12 years

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Definitions:

Halo Effect

A cognitive bias where the perception of a particular trait is influenced by the perception of former traits in a sequence of interpretations.

Reciprocal Liking

The phenomena where people tend to like others who like them in return.

Primacy Effect

The cognitive phenomenon where individuals are more likely to remember and give more weight to information that is presented first in a series.

Matching Hypothesis

The notion that people tend to have lovers or spouses who are similar to themselves in physical attractiveness and other assets.