Trish Receives $480 on the First of Each Month

question 127

Multiple Choice

Trish receives $480 on the first of each month. Josh receives $480 on the last day of each month. Both Trish and Josh will receive payments for next three years. At a 9.5 percent discount rate, what is the difference in the present value of these two sets of payments?

• A)$118.63
• B)$121.06
• C)$124.30
• D)$129.08
• E)$132.50

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Definitions:

Functional Relationships

Relationships based on practical or beneficial interactions between entities, often analyzed in psychology and sociology for understanding dynamics.

Token Economy

A behavior modification system that uses tokens as a form of reinforcement for desired behaviors, which can be exchanged for rewards.

Psychiatric Hospital

A medical facility specializing in the diagnosis and treatment of mental health disorders.

Negative Reinforcement

A process in behaviorism where a behavior increases in frequency because it is followed by the removal or avoidance of an unpleasant stimulus.