Examlex

Solved

How Much Must Be Invested Today in Order to Generate

question 77

Multiple Choice

How much must be invested today in order to generate a 5-year annuity of $1,000 per year,with the first payment 1 year from today,at an interest rate of 12%?


Definitions:

Confirmation Bias

The tendency to take evidence that’s consistent with your beliefs more seriously than evidence inconsistent with your beliefs.

Availability Heuristic

The availability heuristic is a cognitive bias that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Representativeness Heuristic

A cognitive shortcut that people use to classify something as belonging to a certain category based on how similar it is to a typical case from that category.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Related Questions