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Suppose You Are Ready to Buy Your First House

question 81

Multiple Choice

Suppose you are ready to buy your first house.To buy the house,you will take out a $140,000 mortgage from the bank.The bank offers you the mortgage for 30 years at an APR of 6.0% with interest compounded monthly.For your tenth monthly payment,what is the reduction in principal?


Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety through gradual exposure to the feared object or situation.

Operant Conditioning

A training procedure by which behavior intensity is changed through reinforcement or punishment.

Modeling

A technique in psychotherapy where individuals learn by observing and imitating the behaviors of others.

Reinforcement

The process of encouraging or establishing a pattern of behavior by offering reward or punishment.

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