Assuming an After-Tax Rate of Return of 10%,John Should Prefer

question 63

True/False

Assuming an after-tax rate of return of 10%,John should prefer to pay $85 today instead of $100 in one year.1/(1 + .10) = .909 PV.$100 x.909 = $90.90 vs $85.00.

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Definitions:

Peer Conformity

The tendency to adopt the behaviors, attitudes, or values of one's peer group in order to fit in or be accepted.

Peer Pressure

The influence exerted by a peer group, encouraging individuals to change their attitudes, values, or behaviors to conform to group norms.

Nonconformists

Individuals who reject or do not adhere to the norms, values, or practices of the majority society or group.

Identity Foreclosures

A state in developmental psychology where an individual prematurely commits to an identity without adequately exploring alternatives.