Future Value: Brittany Willis Is Looking to Invest for Retirement

question 4

Multiple Choice

Future value: Brittany Willis is looking to invest for retirement, which she hopes will be in 20 years. She is looking to invest $22,500 today in U.S. Treasury bonds that will earn interest at 6.25 percent annually. How much will she have at the end of 20 years? (Round to the nearest dollar.)

• A) $68,870
• B) $50,625
• C) $75,642
• D) None of the above

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Definitions:

Lowballing

A sales and negotiation tactic where an initially lower price is offered to lure the customer or counterpart, only to increase it later on.

Normative Influence

Pressure to conform to the expectations or norms of a group, affecting individuals’ behavior and attitudes.

Personal Standards

Individual beliefs or rules about the level of performance or behavior one should achieve or adhere to.

Hazing

Activities involving harassment, abuse, or humiliation used as a way of initiating a person into a group.