You Would Like to Give Your Daughter $40,000 Towards Her

question 31

Multiple Choice

You would like to give your daughter $40,000 towards her college education thirteen years from now. How much money must you set aside today for this purpose if you can earn 6.3% on your funds?

• A) $17,750.00
• B) $17,989.28
• C) $18,077.05
• D) $18,213.69
• E) $18,395.00

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Definitions:

Sociometer Theory

A psychological theory suggesting that self-esteem acts as an internal gauge of the degree to which one is included or valued in social groups.

Self-Reference Effect

The enhancement of long-term memory that comes from thinking about how information being memorized relates to the self.

Self-View

The perception or conception that one has of oneself, including beliefs and feelings about one's attributes and identity.

Schematic

Relating to or representing a scheme or diagram; in cognitive science, refers to a mental structure that represents some aspect of the world or a process for organizing information and beliefs.