Marianne and Roger Are in Good Health and Have Reasonably

question 33

Multiple Choice

Marianne and Roger are in good health and have reasonably secure careers. Each earns $45,000 annually. They own a home with a $125,000 mortgage; they owe $25,000 for their car loans and have $22,000 in student loans. If one should die, they think that funeral expenses would be $12,000. What is their total insurance need using the DINK method?

• A) $12,000
• B) $86,000
• C) $98,000
• D) $172,000
• E) $217,000

Calculate and compare activity costs before and after process improvements.

Understand the difference between methodologies that consider and ignore present value in capital investment analysis.

Be able to define and calculate the average rate of return and understand its significance.

Understand the concept of the cash payback period and how to calculate it.

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Definitions:

Operant Conditioning

A system of learning whereby the dynamism of a behavior is managed through the distribution of rewards or the assignment of penalties.

Mental Processes

The internal, covert activities of the mind, such as thinking, feeling, problem-solving, and decision-making.

Voluntary Behaviors

Actions that are performed as a result of conscious choice or decision.

Cognitive Learning

Learning that involves mental processes like thinking, knowing, remembering, and problem-solving, highlighting how we understand and apply knowledge.