Ruth Wants to Save an Amount of Money to Buy

question 12

Essay

Ruth wants to save an amount of money to buy a new computer two years from now.She estimates that the price of the computer will be $800,and she wants to save the money in two tranches at the beginning of each of the next two years.For simplicity,suppose interest is computed only at the end of the year and Ruth wants to save equal amounts every year.If the interest rate is 10% per year,how much does Ruth need to save every year?

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Definitions:

Animal Research

The use of non-human animals in scientific experiments to study biological, psychological, or social processes.

Behaviourism

A theory in psychology that asserts that behaviors are a result of the environment and stimuli, emphasizing observable and measurable behaviors over internal mental states.

Behaviourism

A psychological approach that emphasizes the study of observable behaviors and the environment's effect on behavior, minimizing the importance of mental states.

Skinner

B.F. Skinner, a pioneering figure in psychology who developed the theory of operant conditioning, emphasizing how behavior is influenced by its consequences.