Assuming Equal Time Intervals Between the Payments and a Constant

question 62

Multiple Choice

Assuming equal time intervals between the payments and a constant rate of return,which of the following cash flow patterns represents an annuity? $\begin{array}{|l|c|c|c|c|c|c|}\hline & \text { Year 1 } & \underline{\text { Year 2 }} & \underline{\text { Year 3 }} & \underline{\text { Year 4 }} & \underline{\text { Year 5 }} & {\text { Year 6 }} \\\hline \text { A) } & \$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000 & \$ 1,000 \\\hline \text { B) } & \$ 500 & \$-0- & \$ 500 & \$ 500 & \$ 500 & \$-0- \\\hline \text { C) } & \$ 100 & \$ 200 & \$ 300 & \$ 400 & \$ 500 & \$ 600 \\\hline\end{array}$

• A) A
• B) B
• C) C
• D) Any of the answers can represent an annuity.

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Definitions:

Skinner

B.F. Skinner, a psychologist and behaviorist known for his development of the operant conditioning theory, emphasizing the influence of external stimuli on behavior.

Biological Predisposition

Rephrased from Genetic Predispositions: The inherent genetic makeup that increases the likelihood of an individual developing certain conditions or traits.

Generalization

The process by which individuals apply learned responses to similar but not identical stimuli.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of non-exposure to the conditioned stimulus.