How Much Interest Is Included in the Accumulated Value of $4750

question 97

Essay

How much interest is included in the accumulated value of $4750 paid at the end of every six months for 4.5 years if the interest rate is 8.5% compounded semi-annually?

---

Definitions:

Drive-Reduction Theory

A psychological concept suggesting that motivation arises from biological needs that push organisms to seek homeostasis through reducing drives stemming from those needs.

Tension

The physical or emotional strain caused by conflicting or demanding circumstances.

Stability

The condition of being resistant to change or variation, often used in psychological contexts to refer to emotional or mental consistency.

Primary Drives

Basic, instinctual drives that motivate behaviors necessary for survival, such as hunger, thirst, and avoidance of pain.