Lotta Dough Just Won the State Lottery and Has Elected

question 45

Multiple Choice

Lotta Dough just won the state lottery and has elected to receive $50,000 per year for 20 years in the form of an annuity due. What is the present value of this stream of payments if money can earn 8 percent annual interest?

• A) $579,139
• B) $500,000
• C) $530,180
• D) $479,035

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Definitions:

Aggression

A range of behaviors that can result in both physical and psychological harm to oneself, others, or objects in the environment.

Incentives

Rewards or motives that drive individuals towards specific behavior or accomplishment.

Mowrer's Theory

refers to the two-factor theory of learning developed by O. Hobart Mowrer, combining classical and operant conditioning to explain behavior and its changes.

Tolman's Theory

A theory proposed by Edward C. Tolman that emphasizes cognitive processes in learning, suggesting that individuals form cognitive maps to navigate and understand the environment.