A Client Agrees to Invest $100,000 Three Years from Now

question 24

Multiple Choice

A client agrees to invest $100,000 three years from now in a business project, and decides to deposit funds today in a bank account that pays 6 percent compound interest annually. How much does the client need to deposit in order to be able invest $100,000 in three years time?

• A) $82,000
• B) $83,961.93
• C) $119101.6
• D) $83,748.43

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Definitions:

Customer Service

The assistance and service provided to customers before, during, and after purchasing and using goods or services.

Social Learning Theory

A theory in psychology that states people learn new behaviors by observing and imitating others, as well as by receiving rewards or punishments.

Negative Reinforcement

Negative Reinforcement is a concept in behavior psychology where the removal of an unfavorable outcome or stimulus following a desired behavior increases the likelihood of that behavior being repeated.

Punishment

A consequence given for a behavior perceived as wrong or undesirable, often with the intent to correct or deter such behavior.