Calculate the Present Value of an Asset Worth $2,000 Four

question 356

Multiple Choice

Calculate the present value of an asset worth $2,000 four years from now if the interest rate is 6 percent.

• A) $2,480
• B) $2,524.95
• C) $1,584.19
• D) $1,520

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Definitions:

Pavlovian Conditioning

A learning process that involves associating a previously neutral stimulus with an unconditioned stimulus to elicit a conditioned response similar to the unconditioned response.

Conditioned Stimulus (CS)

A previously neutral stimulus that, after being repeatedly presented prior to an unconditioned stimulus, elicits a conditioned response.

Unconditioned Stimulus (UCS)

A stimulus that elicits a reaction automatically, without any pre-existing learning required.

Vicarious Conditioning

The development of the conditioned response to a stimulus after observation of the pairing of conditioned stimulus (CS) and unconditioned stimulus (UCS).