Mr & Mrs Pribel Wish to Purchase a Boat in 8 Years

question 27

Essay

Mr. & Mrs. Pribel wish to purchase a boat in 8 years when they retire. They are planning to purchase the boat using proceeds from the sale of their property which is currently worth $90,000 and its value is growing at 7 percent a year. The boat is currently worth $200,000 increasing at 5 percent per year. In addition to the value of their property, how much additional money should they deposit at the end of each year in an account paying 9 percent annual interest in order to be able to buy the boat upon retirement?

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Definitions:

Conditioned

Having learned a response or behavior through the process of conditioning, often in relation to a specific stimulus.

Delayed Conditioning

A classical conditioning procedure in which the conditioned stimulus is initiated before the unconditioned stimulus and both stimuli end at the same time.

Temporal Conditioning

is a type of classical conditioning where a stimulus is presented at regular intervals, leading to an anticipatory response.

Unconditioned Stimulus

An event or circumstance that automatically triggers a naturally occurring response without any prior learning.