If an Investment Has a Goal (Future Value) of $S

question 47

Multiple Choice

If an investment has a goal (future value) of $S after n years, invested at interest rate i (as a decimal) , compounded annually, then the present value P that must be invested is given by Find P for the given S, n, and i. Round your answer to two decimal places. $24,000 after 10 years at 7.75%

• A) $10,712.11
• B) $13,287.89
• C) $11,377.28
• D) $13,209.09
• E) $12,622.72

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Definitions:

Theory Perseverance Effect

The phenomenon where beliefs persist even after the evidence supporting them has been discredited or debunked.

Thinking About Thinking

The process of reflecting on one's own thought patterns, beliefs, and cognitive processes; also known as metacognition.

Correspondence Bias

The tendency to draw inferences about a person's unique and enduring dispositions from behaviors that can be entirely explained by the situations in which they occur.

External Attributions

The process of assigning the cause of behavior to situational factors outside the individual, rather than internal characteristics.