An Investment Today of $8,424 at 6% Will Yield Total

question 133

True/False

An investment today of $8,424 at 6% will yield total payments of $10,000 over five years.The reason for this increase is that the interest is being earned on principal that is left invested each year.

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Definitions:

Extinction

The process by which a conditioned response diminishes and eventually disappears, as a result of the conditioned stimulus being repeatedly presented without the unconditioned stimulus.

Stimulus Narrowing

The restriction of a response to a limited number of situations.

Blocking

A learning phenomenon where a previously learned association prevents the acquisition of a new association with the same conditioned stimulus.

Conditioned Response Recovery

The reappearance of a previously extinct conditioned response after a rest period, without the need for further conditioning.