If the Current Rate of Interest Is 8%,then the Future

question 6

Multiple Choice

If the current rate of interest is 8%,then the future value (FV) of an investment that pays $1000 per year and lasts 20 years is closest to:

• A)$18,519
• B)$45,762
• C)$9,818
• D)$20,000
• E)$10,016

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Definitions:

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning techniques.

Underlying Causes

The root or fundamental reasons behind a symptom, problem, or condition, often hidden or not immediately obvious.

Changing Unwanted Behaviors

The process of modifying or eliminating negative behaviors through various techniques like therapy, behavior modification, or self-discipline.

Operant Conditioning

A learning process in psychology where the strength of a behavior is modified by reinforcement or punishment.