You Are Trying to Decide How and When to Take

question 15

Multiple Choice

You are trying to decide how and when to take your next cruise.You could invest $200 a month for four years in a money market that is earning 4%,or you could go now,taking out a loan for $10,000 at 11% and paying it off over the next four years.If inflation runs at 2% for the next four years,what is the true difference in cost between the two options?

• A)$400
• B)$800
• C)$1,205.16
• D)$2,420.06

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Definitions:

Varied Skills

Refers to a wide range of abilities and competencies an individual possesses, which can apply to different tasks or job roles.

Path-goal Theory

Path-goal Theory is a leadership model that suggests a leader's behavior is contingent to the satisfaction, motivation, and performance of their subordinates, aiming to clear the path to their goals.

Minimal Effort

The least amount of physical or mental energy expended to achieve an objective.

Effective Time Management

The practice of organizing and planning how to allocate your time between specific activities wisely and efficiently.