At Which Interest Rate Is the Present Value of $95

question 210

Multiple Choice

At which interest rate is the present value of $95.40 one year from today equal to $90 today?

• A)4 percent
• B)5 percent
• C)6 percent
• D)7 percent

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Reinforcement

In behavioral psychology, a consequence applied that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Study Habits

Methods and practices used consistently to acquire new knowledge or skills.

Operant Conditioning

A form of learning in which a voluntary response is strengthened or weakened by its association with positive or negative consequences.