(Future Value Table Required)An Accounting Student in Her First Year

question 30

Essay

(Future Value Table Required)An accounting student in her first year of college who is working on a 4-year degree receives from her parents $200 in her first year.As an incentive to encourage her to graduate,they promise that in the second year she will receive double the amount of the first year,and in the third year she will receive double the amount of the second year.In her fourth year,she will receive $1,000.If she invests her yearly gifts at a rate of 4% as she receives them,compare the value of the investment after five years with the value of the gift (present value).What is the investment loss if the gift is not invested?

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Definitions:

Respondent Conditioning

A form of learning in which a behavioral response is elicited by a previously neutral stimulus that has become associated with a meaningful stimulus.

Desirable Behavior

Actions or conduct that are encouraged, valued, or considered appropriate within a specific cultural, social, or organizational context.

Withholding Negative

The practice of not sharing negative feedback or critiques to avoid conflict or discomfort.

Positive Consequences

Results of a behavior that a person finds attractive or pleasurable.