Lara Is Going to Receive $10,000 a Year at the End

question 12

Multiple Choice

Lara is going to receive $10,000 a year at the end of each of the next five years from her insurer to meet her education cost. Using a discount rate of 14%, the present value of the receipts can be stated as:

• A)PV = $10,000 (Annuity FV factor, i = 14%, n = 5).
• B)PV = $10,000 (PV factor, i = 14%, n = 5).
• C)PV = $10,000 (Annuity PV factor, i = 14%, n = 5).
• D)PV = $10,000 (FV factor, i = 14%, n = 5).

---

Definitions:

Childhood Memories

Recollections of past events that occurred during one's childhood, often influencing one's personality, behaviors, and perceptions in adulthood.

Respondent Behavior

A type of behavior that occurs as an automatic response to a specific stimulus, typically conditioned through association.

Operant Behavior

Behavior that is controlled by its consequences, including rewards and punishments, in the context of behaviorism.

Token Economy

A behavioral modification system where desired behaviors are reinforced with tokens that can be exchanged for rewards.