Suppose You Win a Small Lottery and You Are Given

question 65

Multiple Choice

Suppose you win a small lottery and you are given the following choice: You can receive (1) an immediate payment of $5,000 or (2) two annual payments, each in the amount of $2,700, with the first payment coming one year from now, and the second payment coming two years from now. You would choose to take the two annual payments if the interest rate is

• A)2 percent, but not if the interest rate is 3 percent.
• B)3 percent, but not if the interest rate is 4 percent.
• C)4 percent, but not if the interest rate is 5 percent.
• D)5 percent, but not if the interest rate is 6 percent.

---

Definitions:

Proximal Influences

Factors or elements that have a direct and immediate impact on an individual's behavior or attitudes.

Financial Stability

The condition of having a stable financial situation, where income consistently meets or exceeds expenses.

Social Cognitive Career Theory

A theory that focuses on how individuals' beliefs in their own capabilities affect their career paths, choices, and performance.

Barriers

Obstacles or impediments that hinder progress or prevent the achievement of a goal.