The Value of an Investment Paying 4% Compounded Quarterly Will

question 65

Multiple Choice

The value of an investment paying 4% compounded quarterly will have a value at the end of one year equal to

• A) An investment paying 16% compounded annually at the end of 1 year.
• B) An investment paying 2% compounded semi-annually at the end of 1 year.
• C) An investment paying 4% compounded annually at the end of 4 years.
• D) An investment paying 1% compounded annually at the end of 4 years.

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Definitions:

Automatic Processing

Cognitive operations that occur without conscious thought or intention, often quickly and efficiently.

Controlled Processing

A type of cognitive processing that requires conscious, deliberate thought and is typically used in situations requiring attention to detail and complex problem-solving.

Doctrine of Behaviorism

A theory in psychology that focuses on studying observable behaviors rather than the mental processes behind them, and believes that behaviors are learned from the environment.

Social Psychology

A branch of psychology that deals with understanding how individual thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.