Solve the Application Problem

question 20

Multiple Choice

Solve the application problem. Round to the nearest cent.
-Find the amount of each payment into a sinking fund if $14,000 must be accumulated. Payments are made at the end of each quarter for 3 years, with interest of 6% compounded quarterly.

• A)$4,597.32
• B)$1,180.06
• C)$829.92
• D)$1,073.52

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Definitions:

Drive-Reduction Principle

A theory in psychology that posits motivation arises from biological needs that drive an individual to act in ways that reduce the drive and bring about a steady state.

Extrinsic Motivation

The desire to behave in a certain way to gain some external reward or to avoid some undesirable consequence.

Drive

An internal state of tension or arousal that is brought about by an underlying need and that an organism is motivated to reduce.

Tension

The state of being stretched tight, which can refer to physical objects or describe psychological strain and stress.