If the Interest Rate Is 7 Percent,$500 Received at the End

question 29

Multiple Choice

If the interest rate is 7 percent,$500 received at the end of nine years is worth how much today?

• A) 500/(0.07)⁹
• B) 500/(1 + .07)⁹
• C) 500/(1 + 7)⁹
• D) 500

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Definitions:

Discrimination

The inappropriate and unjustified treatment of people based on the groups they belong to.

Prejudice

Preconceived opinions or judgments about people or groups, often negative and not based on actual experience or facts.

Stereotype

A widely held but oversimplified belief or generalization about a particular group or type of person.

Mental Shortcut

Cognitive strategies or heuristics that simplify decision making by reducing complex problem-solving to simpler rules of thumb.