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Eric's Father Is in the Military and Has Been Away

question 4

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Eric's father is in the military and has been away from home for over nine months without leave and has not seen his son since Eric was two months old.Eric's father comes home and is anxious to spend time with his wife and son.However, during the first few hours of his return, Eric cries and screams when he is alone with his father (without his mother being present.) Eric is exhibiting


Definitions:

Rate Of Return

The increase or decrease in value of an investment within a set timeframe, represented as a percentage of the investment's starting price.

Discount Rate

The interest rate charged by central banks on loans they give to commercial banks or the rate used to discount future cash flows to their present value.

Present Value

The worth in present terms of a lump sum or cash flows anticipated in the future, using a predetermined rate of return for the calculation.

Per Year

A time frame reference indicating an annual basis.

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