Assume That You Are Willing to Postpone Consumption of $1,000

question 6

Multiple Choice

Assume that you are willing to postpone consumption of $1,000 today and buy a certificate of deposit (CD) at your local bank with the $1,000.Holding the CD for one year provides you with an 8% reward for saving or postponing consumption.This reward for postponing consumption implies that at the end of the year you will have how much more money for spending?

• A)$79.50
• B)$79.75
• C)$79.90
• D)$80.00

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Definitions:

High Process Control

A situation where there is strict regulation and management of the procedures and methods utilized in production or in carrying out tasks.

Third-party Conflict

A type of conflict resolution involving an outside party who intervenes to help the conflicting parties reach a resolution.

Arbitration

A form of alternative dispute resolution where a neutral third party makes a binding decision to resolve a dispute between two or more entities.

Saving Face

The act of preserving one's reputation, dignity, or respect in a social context.