Find the Present Value of a Perpetuity of $1,500 Per

question 44

Multiple Choice

Find the present value of a perpetuity of $1,500 per year, given a 20% opportunity cost.

• A)$800
• B)$3,000
• C)$300
• D)$6,000
• E)$7,500

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Definitions:

Higher-Order Conditioning

A process in classical conditioning where a stimulus that was previously neutral becomes a conditioned stimulus by being paired with another conditioned stimulus.

Shaping

A method of teaching new behaviors by rewarding successive approximations toward a desired behavior.

FR Schedule

Fixed Ratio Schedule, a type of reinforcement schedule used in behavioral psychology where a response is reinforced only after a specified number of responses have occurred.

Reinforcement Given

The delivery of a stimulus following a behavior that increases the likelihood of that behavior being repeated.