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:

Cathect

To invest emotional energy into a person, object, or idea.

Transference Neurosis

A phenomenon in psychoanalysis where patients project feelings, attitudes, or desires onto the therapist that actually stem from previous relationships in their lives.

Standard Psychoanalysis

A therapeutic method developed by Freud focusing on uncovering unconscious conflicts and motivations through techniques like dream analysis and free association.

Blank Screen

A therapeutic technique where the therapist remains neutral and refrains from disclosing personal views, encouraging patients to project their feelings or thoughts unconsciously.