What Annually Compounded Rate of Return Must Thiva Earn in Her

question 22

Multiple Choice

What annually compounded rate of return must Thiva earn in her TFSA account in order for month end contributions of $950 to accumulate $1 million after 25 years?

• A) 0%
• B) 8.97%
• C) 8.62%
• D) 0.716%
• E) 7.16%

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Definitions:

Cognitive Dissonance Theory

A psychological theory suggesting that individuals experience discomfort when holding two or more conflicting cognitions (beliefs, attitudes) and are motivated to reduce this discomfort.

Festinger

Refers to Leon Festinger, a psychologist best known for his cognitive dissonance theory, which explores the discomfort felt by individuals when their beliefs or behaviors are inconsistent.

Cognitive Consistency

A psychological theory suggesting that individuals are motivated to maintain consistency among their cognitions, leading to changes in attitudes, beliefs, or behaviors when inconsistencies occur.

Festinger and Carlsmith's Experiment

A psychological study on cognitive dissonance which demonstrated how attitude change can result from forced compliance behavior.