Use the Following Information to Answer the Question(s) Below

question 22

Multiple Choice

Use the following information to answer the question(s) below.
Consider the following four alternatives:
1. $132 received in two years.
2. $160 received in five years.
3. $200 received in eight years.
4. $220 received in ten years.
-The ranking of the four alternatives from most valuable to least valuable if the interest rate is 7% per year would be:

• A) 1, 2, 3, 4
• B) 4, 3, 2, 1
• C) 3, 4 2, 1
• D) 2, 3, 1, 4

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Definitions:

Cue

A signal or prompt that triggers an action or a response.

Learned Behavior

Behaviors that an individual acquires through conditioning or observation in their environment.

Piagetian

Relates to the theories and works of Swiss psychologist Jean Piaget, who studied the cognitive development of children.

Psychometric

Referring to the measurement of mental functions, abilities, and processes.