If $10,000 Is Invested for One Year and Earns an Annual

question 126

Multiple Choice

If $10,000 is invested for one year and earns an annual interest rate of 7%,it will grow in value to:

• A) $10,700.
• B) $17,000.
• C) $700
• D) $70,000.

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Definitions:

Primacy Effect

The tendency to remember information that is presented first or early in a list more effectively than information presented later.

Recency Effect

The psychological phenomenon where the most recently presented information is remembered better than earlier information.

Sequence Order Effect

The phenomenon where the order in which items are presented affects the recall or understanding of those items.

Reconstruction

An account of an event that has been pieced together from a few highlights.