Wilhelmina Has Just Received an Inheritance of $50,000, and She

question 145

Multiple Choice

Wilhelmina has just received an inheritance of $50,000, and she would like to put it into an investment portfolio for 20 years. To calculate the value of the investment at the end of the 20 year period, which of the following tables would be the best for her to use?

• A) Present Value of $1
• B) Present Value of an Annuity of $1
• C) Future Value of $1
• D) Future Value of an Annuity of $1

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Definitions:

Imagine

The ability to form new images and sensations in the mind that are not perceived through the five senses.

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response when the reinforcement is no longer presented.

Shock-Avoidance Response

A learned behavior in which an individual or animal acts to avoid or prevent an anticipated painful or unpleasant stimulus.

Unacceptable Thought

A notion or idea that is denied or repressed because it is distressing or socially unacceptable, often discussed in psychoanalytic contexts.