The Present Value of a $100 Per Year Perpetuity at 10

question 83

Multiple Choice

The present value of a $100 per year perpetuity at 10% per year interest rate is $1000. What would be the present value if the payments were compounded continuously?

• A) $1000.00
• B) $1049.21
• C) $1024.40
• D) None of the above

---

Definitions:

Reinforcement

The act of strengthening a response by adding a reward, thus increasing the likelihood that the response will be repeated.

Operant Behaviors

Actions that an individual takes that are modified by the consequences they lead to, extensively studied in operant conditioning.

Respondent Behaviors

Automatic responses elicited by specific stimuli, based on the principle of classical conditioning in psychology.

Variable-ratio Schedule

A reinforcement schedule in operant conditioning where a response is rewarded after an unpredictable number of responses.