Use the Table for the Question(s)below

question 30

Multiple Choice

Use the table for the question(s) below.
Suppose the term structure of interest rates is shown below:
-The present value of receiving $1000 per year with certainty at the end of the next three years is closest to:

• A)$2737.
• B)$2723.
• C)$2733.
• D)$2744.

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Definitions:

Forgetting

The inability to retrieve memories or information that was once stored in the brain, often due to decay or interference.

Psychologists

Professionals specializing in the study and application of psychology, dealing with mental processes and behavior.

Learning

The process of acquiring knowledge or skills through experience, study, or being taught.

Classical Conditioning

A method of learning that takes place when an environmental cue is linked to a naturally happening stimulus.