Suppose That a Young Couple Has Just Had Their First

question 23

Multiple Choice

Suppose that a young couple has just had their first baby and they wish to ensure that enough money will be available to pay for their child's college education. Currently, college tuition, books, fees, and other costs average $12,000 per year. On average, tuition and other costs have historically increased at a rate of 5% per year. Assuming that college costs continue to increase an average of 5% per year and that all her college savings are invested in an account paying 8% interest, then the amount of money she will need to have available at age 18 to pay for all four years of her undergraduate education is closest to ________.

• A) $110,793
• B) $55,397
• C) $77,555
• D) $132,952

Comprehend the role of self-efficacy in career choice and development.

Identify the effect of social influences, including gender, race, and disability, on career development.

Describe the process and benefits of various counseling techniques (e.g., decisional balance sheets, card sorting) in career counseling.

Recognize the foundational researchers in the application of Bandura’s theory to career choice.

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Definitions:

Simple Interest

Interest calculated only on the principal amount, or on that portion of the principal amount which remains unpaid.

Savings Accounts

Bank accounts that earn interest over time, allowing individuals to deposit funds for future use.

Deposit

A sum of money placed in an account or paid as a part of a transaction to demonstrate commitment or reserve something.

Present Values

The valuation at the moment of money expected in the future or regular cash flows, when discounted using a certain rate of return.