Use the Present Value and Future Value Tables Included in Appendix

question 35

Multiple Choice

Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
- Riverview County issued a $500,000, 10 percent, 10-year bond on January 1, 2012, for 113.6 when the effective interest rate was 8 percent. Interest is payable on June 30 and December 31. Riverview uses the effective-interest method to amortize all premiums and discounts. How much interest expense should Riverview record on December 31, 2012?

• A) $25,000.00
• B) $23,810.15
• C) $22,628.80
• D) $19,920.10

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Definitions:

Spontaneous Recovery

The unexpected return of a learned behavior after its apparent extinction, highlighting the persistence of memory traces.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, triggers a conditioned response.

Conditioned Response

A learned reaction to a conditioned stimulus that occurs because of previous conditioning.

Extinction

The diminishing of a conditioned response; occurs in classical conditioning when an unconditioned stimulus (US) does not follow a conditioned stimulus (CS).