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David Has Purchased an Investment That He Expects to Produce

question 40

Multiple Choice

David has purchased an investment that he expects to produce an annual cash flow of $3,000 for five years. He requires an 8% rate of return compounded annually. What is the maximum amount that David can pay and still earn the required rate of return?

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Definitions:

Operant Avoidance Learning

A learning process in which the subject acquires a behavior to prevent or avoid an unpleasant stimulus.

Discriminative Stimulus

A stimulus in the environment that signals the availability of reinforcement or punishment, guiding behavior accordingly.

Negative Reinforcement

A behavior modification technique that involves the removal of an unpleasant stimulus after a desired behavior is exhibited, making the behavior more likely to happen in the future.

Punishment

A consequence that decreases the likelihood of a behavior being repeated.

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