An Investor Can Earn a 6

question 11

Multiple Choice

An investor can earn a 6.7% nominal rate of return, but inflation is expected to be 3%. If the individual invests $3,000 per year for 25 years, the real future value of this investment is ________. (All investments occur at year-end) .

• A) $73,571
• B) $66,334
• C) $118,293
• D) $48,732

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Definitions:

Social Loafing

The inclination of people to put forth less effort when they are part of a team as opposed to when they are working by themselves.

Pre-med Requirement

Pre-med requirement encompasses the courses and exams that need to be completed before applying to medical school.

Class Project

A collaborative educational task where students work together in groups to achieve a common goal or complete a specific assignment.

Group Polarization

The tendency of groups to make more extreme decisions than what their members first considered.