If the Interest Rate Is 10%, the Present Value of $100

question 1

Multiple Choice

If the interest rate is 10%, the present value of $100 to be paid in two years is

• A)$100/1.1.
• B)$100/1.1².
• C)$80.
• D)$121.

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Definitions:

Conditioned Stimulus (CS)

A stimulus that was once neutral but has become linked with an unconditioned stimulus, thereby eliciting a conditioned response over time.

Involuntary Responses

Physical or emotional reactions that occur without conscious choice, often as reflexes or automatic responses.

Classical Conditioning

An instructional process where two stimuli are frequently combined, leading to a response that initially comes from the second stimulus but later comes from the first stimulus alone.

Neutral Stimuli

Stimuli that do not elicit any particular response before conditioning in a learning process.