At an Interest Rate of 10%,which of the Following Sequences

question 69

Multiple Choice

At an interest rate of 10%,which of the following sequences of cash flows should you prefer? $$\begin{array}{l}\begin{array} { c c c c } & \text { Year l } & \text { Year 2 } & \text { Year } 3 \\\text { A) } & 500 & 300 & 100 \\\text { B) } & 100 & 300 & 500 \\\text { C) } & 300 & 300 & 300\end{array}\\\text { D) Any of the above as they all add up to } \$ 900\end{array}$$

• A)option A
• B)option B
• C)option C
• D)option D

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Definitions:

Reflexive Behaviour

Automatic, involuntary actions or responses to stimuli, that do not require conscious thought.

Operant Conditioning

The process of acquiring knowledge by which a behavior's level is modified using encouragement or deterrents.

Classical Conditioning

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

Herding Behaviour

A social phenomenon where individuals in a group act collectively without centralized direction, often observed in financial markets, social settings, or animal behavior.