Julie Is Getting Ready for Final Exams

question 189

Multiple Choice

Julie is getting ready for final exams. She has three exams during the first three days of the exam period. To prepare, she has outlined a schedule that includes reviewing for her first exam on one day, her next exam on the following day, and her third exam on the third day. On each day, she has also allocated some time when she can watch TV or basically do nothing. Which best explains why Julie provides some time for leisure?

• A)Julie is not that smart and cannot study that long.
• B)Julie is slacking off and will most likely fail all of her finals.
• C)Julie realizes that there are benefits to leisure time that outweigh the costs of constant studying.
• D)Julie does not understand the importance of studying.

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Definitions:

Interest Rate

The proportion of interest charged to a borrower by a lender for the use of borrowed money.

Investment

The operation of earmarking financial resources with the hope of obtaining a return or profit.

Simple Interest

A method of calculating interest where the interest charge is based on the original principal only, not on the accumulated interest.

Maturity Value

The amount payable to an investor at the end of a security's term or life, which typically includes the principal plus interest.