The Value of a Five-Year Annuity Is Equal to the Sum

question 81

True/False

The value of a five-year annuity is equal to the sum of two perpetuities. One makes its first payment in year 1, and the other makes its first payment in year 6.

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Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce fear, anxiety, or phobias through gradual exposure to the feared object or situation.

Behavior Modification

The use of empirically demonstrated behavior change techniques to increase or decrease certain behaviors.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety through gradual exposure to the feared object or situation coupled with relaxation training.

Addictive Drug

A substance that causes dependency or addiction, characterized by a compulsive desire to continue taking the drug despite harmful consequences.