What Will Be the Maturity Value of $15,000 Placed in a 120-Day

question 128

Short Answer

What will be the maturity value of $15,000 placed in a 120-day term deposit paying a simple interest rate of 2.75%, if the term deposit proceeds are reinvested into another 120-day term deposit paying 3.5%?

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Definitions:

Secondary Reinforcer

A stimulus that has acquired reinforcing properties through association with a primary reinforcer, such as money becoming valuable through its ability to purchase food or other basic needs.

Salient

Refers to something that stands out prominently or is most noticeable or important.

Shaping

A method of behavior modification that uses rewards to gradually guide an individual's actions toward a desired behavior.

Classical Conditioning

A teaching mechanism where learning arises from the pairing of an environmental cue with a naturally presenting stimulus, leading to a trained reaction.