Sara Is Investing $1,000 Today

question 19

Multiple Choice

Sara is investing $1,000 today.Which one of the following will increase the future value of that amount?

• A)Shortening the investment time period.
• B)Paying interest only on the principal amount.
• C)Paying simple interest rather than compound interest.
• D)Paying interest only at the end of the investment period rather than throughout the investment period.
• E)Increasing the interest rate.

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Definitions:

Rationalisation

A defense mechanism in which controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Unacceptable Behaviour

Actions or conduct deemed inappropriate or offensive in a given social context or by societal standards, warranting disapproval or correction.

False Excuse

A fabricated or insubstantial reason given to justify an action or decision.

Regression

A defense mechanism leading an individual to revert to an earlier stage of development in the face of unacceptable thoughts or impulses.