Your Daughter Has Been Saving $500 a Year for Each

question 129

Multiple Choice

Your daughter has been saving $500 a year for each of the last 10 years for her "sweet sixteen" party.How much is now in her party account (at the end of the tenth year) if she earned an annual rate of return of 6%?

• A)$6,590.40
• B)$7,680.04
• C)$5,300.00
• D)$8,714.84

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Definitions:

Self-serving Bias

The common habit of a person taking credit for positive events or outcomes, but blaming outside factors for negative events.

Locus Of Control Bias

A cognitive bias where an individual attributes successes and failures to either internal or external factors disproportionately.

Achievement-related Results

Outcomes or successes in tasks or goals that are valued in a cultural or societal context, often measured through performance or attainment.

Weiner's Attribution Theory

A theory that suggests people tend to attribute causes to their successes and failures based on three main factors: locus of control, stability, and controllability.