What Is the PV of an Ordinary Annuity with 5

question 89

Multiple Choice

What is the PV of an ordinary annuity with 5 payments of $4,700 if the appropriate interest rate is 4.5%?

• A) $16,806
• B) $17,690
• C) $18,621
• D) $19,601
• E) $20,633

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Definitions:

Operant Conditioning

The process by which a response becomes more likely to occur or less so, depending on its consequences.

Classical Conditioning

The process by which a previously neutral stimulus becomes associated with a stimulus that already elicits a response and, in turn, acquires the capacity to elicit a similar or related response. Also called Pavlovian or respondent conditioning.

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning techniques.

Graduated Exposure

In behavior therapy, a method in which a person suffering from a phobia or panic attacks is gradually taken into the feared situation or exposed to a traumatic memory until the anxiety subsides.