An Insurance Firm Agrees to Pay You $3,310 at the End

question 106

Multiple Choice

An insurance firm agrees to pay you $3,310 at the end of 20 years if you pay premiums of $100 per year at the end of each year of the 20 years.Find the internal rate of return to the nearest whole percentage point.

• A) 9%
• B) 7%
• C) 5%
• D) 3%
• E) 11%

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Definitions:

Variable-Ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses.

Reinforced

Strengthened behavior through the application of a stimulus (positive reinforcement) or the removal of an undesirable stimulus (negative reinforcement).

Potential Partners

entities or individuals considered for collaboration or engagement in a specific context or project.

Fixed-Interval

Refers to a schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.