If R Is the Discount Rate,the Formula [1/(1 + R)]

question 67

Multiple Choice

If r is the discount rate,the formula [1/(1 + r) ] refers to the

• A)future value interest factor associated with r for one period.
• B)present value of some future cash flow.
• C)present value interest factor associated with r for one period.
• D)future value interest factor for an annuity with a duration of r periods.

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Definitions:

Conditioned Response

An automatic response established by training to an ordinarily neutral stimulus after association with an unconditioned stimulus.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without the need for learning or conditioning.

Conditioned Response

A learned reaction to a previously neutral stimulus due to repeated association with an unconditioned stimulus.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without previous conditioning or learning.