You Have Saved $47,000 for College and Wish to Use

question 101

Multiple Choice

You have saved $47,000 for college and wish to use $15,000 per year.If you use the money as an ordinary annuity and earn 6.15% on your investment,how many years will your annuity last? Use a calculator to determine your answer.

• A)4.27 years
• B)3.13 years
• C)3.59 years
• D)3.36 years

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Definitions:

Social Decision Scheme

A model or strategy used within a group to aggregate individual preferences or opinions into a collective decision.

Groupthink

A psychological phenomenon that occurs within a group of people, in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or societal standards.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or values).