You Want to Be Able to Travel and Withdraw $3750

question 45

Multiple Choice

You want to be able to travel and withdraw $3750 at the end of every month during your yearlong trip. During your trip your travel fund will earn 6.24% compounded monthly. What is the size of your travel fund if you want to be able to start your trip in 4 years and 7 months?

• A) $32 715.58
• B) $45 315.20
• C) $2849.74
• D) $46 309.57
• E) $45 555.20

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Definitions:

Group Attribution Error

The tendency to overattribute the behavior of individuals within a group to their character rather than to external circumstances.

Law of Small Numbers

A cognitive bias that leads people to draw broad conclusions from small samples.

Stereotypes

Oversimplified generalizations about a group of people that often ignore individual differences, sometimes resulting in prejudiced attitudes or discriminatory actions.

Prejudicial

Showing prejudice or bias, leading to unfair treatment or judgments of others based on preconceived opinions rather than individual merit.