Phil Is a Contestant on a Game Show

question 17

Multiple Choice

Phil is a contestant on a game show.At this point in the game,he can either accept $500 or spin a wheel for a chance of winning $100,000.Which type of behavior is he displaying if he spins the wheel?

• A)forward-looking
• B)risk-adverse
• C)prospective
• D)introspective
• E)risk-taking

---

Definitions:

Compounded Annually

the process of adding interest to the principal sum of a loan or deposit once every year.

RRSP

A Retirement Savings Plan officially recognized for both working individuals and self-employed people in Canada, designed for saving and investing towards retirement.

Annual Contributions

Regular amounts added to an investment, savings account, or retirement fund once every year.

Compounded Semi-Annually

Interest that is compounded semi-annually is applied to the principal amount twice a year, leading to an increase in the overall amount of interest earned compared to simple interest.