You Have a Choice Between Investing $10,000 in a CD

question 90

Multiple Choice

You have a choice between investing $10,000 in a CD that in six months will pay you $10,190 or investing $9,800 in a T-bill that in 182 days will return $10,000. Ignoring any opportunity cost between the two investments, which will give you the higher annualized return and what will the annualized return be?

• A) T-bill; 2.2%
• B) T-bill; 4.09%
• C) CD; 3.8%
• D) CD; 1.9%

---

Definitions:

Pleasurable Consequence

A positive outcome or reward that follows a behavior, making it likely that the behavior will be repeated in the future.

Involuntary

Actions or reactions that occur without conscious control or choice.

Voluntary

Referring to actions or activities that are done willingly, without any coercion or obligation.

Skinner Box

An experimental apparatus developed by B.F. Skinner for studying behavioral conditioning in animals, particularly through reinforcements and punishments.