You Borrowed $50,000 Which You Must Repay in 10 Years

question 65

Multiple Choice

You borrowed $50,000 which you must repay in 10 years.You plan to make an initial deposit today,then make 9 more deposits at the beginning of each the next 9 years,but with the deposits increasing at the inflation rate.You expect to earn 5% on your funds,and you expect a 3% inflation rate.To the nearest dollar,how large must your initial deposit be to enable you to reach your $50,000 target?

• A) $3,008
• B) $3,342
• C) $3,676
• D) $4,044
• E) $4,448

Identify the presence and impact of biases in group decision-making.

Explain the concept of groupthink, its causes, and its symptoms.

Understand the importance of effectively pooling information within groups.

Recognize the role of technology in facilitating group decision-making.

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Definitions:

Gross Earnings

The total amount of money earned by an individual or company before deductions such as taxes and retirement contributions.

Withholding Allowance

A claim made by an employee on the W-4 form that reduces the amount of tax withheld from their paycheck.

Federal Income Tax

A tax levied by the United States government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Gross Earnings

The total amount of money earned by an individual or corporation before any deductions are taken out.