Future Value of an Annuity Due If the Future Value

question 106

Multiple Choice

Future Value of an Annuity Due If the future value of an ordinary, 4-year annuity is $1,000 and interest rates are 6 percent, what's the future value of the same annuity due?

• A) $943.40
• B) $1,000.00
• C) $1,040.00
• D) $1,060.00

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Definitions:

Skinner

Refers to B.F. Skinner, a renowned psychologist best known for his work in behaviorism and the development of the theory of operant conditioning.

Conditioned Stimuli

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

Latent Learning

The subconscious retention of information without immediate or apparent reinforcement or application, which can later be demonstrated when needed.

Absence of Reinforcement

A condition in which a behavior is not followed by a reinforcing stimulus, potentially leading to the reduction or cessation of the behavior.