John Says That the Future Value of $250 Saved for One

question 48

Multiple Choice

John says that the future value of $250 saved for one year at 6 percent interest is less than the future value of $250 saved for two years at 3 percent interest. George says that the present value of a $250 payment to be received in one year when the interest rate is 6 percent is less than the value of a $250 payment to be received in two years when the interest rate is 3 percent.

• A)John and George are both correct.
• B)John and George are both incorrect.
• C)Only John is correct.
• D)Only George is correct.

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Definitions:

Self-modification Program

is a structured approach individuals use to change their own behavior or habits, often involving setting goals, monitoring progress, and employing strategies for change.

Old Patterns

Repeated behaviors or habits that individuals or groups continue to exhibit, often unconsciously, which can sometimes hinder growth or positive change.

Ending Goal

The final objective or aim that one seeks to achieve at the conclusion of a process or endeavor.

Behavior Modification Programs

A systematic approach to changing behavior using principles of operant conditioning, reinforcement, and punishment.