You Have a Contract with Someone Who Has Agreed to Pay

question 22

Multiple Choice

You have a contract with someone who has agreed to pay you $20,000 in four years.She offers to pay you now instead.For which of the following interest rates and payments would you take the money today?.

• A)8 percent,$15,000
• B)7 percent,$16,000
• C)6 percent,$17,000
• D)All of the above are correct.

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Definitions:

Higher-Order Needs

Needs that go beyond basic physical requirements, such as social, esteem, and self-actualization needs, as conceptualized in Maslow's hierarchy of needs.

Intrinsic Motivation

The drive to engage in activities for their intrinsic satisfaction rather than for some separable consequence.

Maslow's Hierarchy of Needs

A psychological theory that categorizes human needs into five levels, from basic physiological needs to self-actualization.

Motivated

Motivated describes the psychological force that drives an individual to take action towards a desired goal, influenced by factors such as personal interest, reward, or obligation.