Renfro Corporation Will Receive $20,000 Today (January 1, 2006), and Also

question 36

Multiple Choice

Renfro Corporation will receive $20,000 today (January 1, 2006) , and also on each January 1st for the next five years (2007 - 2011) .What is the present value of the six $20,000 receipts, assuming a 12% interest rate.?

• A)$82,228.
• B)$92,096.
• C)$162,304.
• D)$181,780.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response on its own.

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Unconditioned Stimulus

A stimulus that automatically triggers a response without any need for prior learning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.