Discounted at 10%, $1000 Received at the End of Each

question 46

True/False

Discounted at 10%, $1000 received at the end of each year for three years is worth less than $2,700 received today.
PV_A = A PV_IFA (App. D: 3 periods, 10%)
= $1,000  .2.487 = $2,487

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Definitions:

Vicarious Conditioning

A form of learning in which the learner acquires a conditioned response merely by observing another participant being conditioned.

Insight Learning

A form of problem-solving that occurs when a solution is suddenly realized after a period of contemplation, often without the trial-and-error processes associated with operant conditioning.

Garbage Can

A metaphor in organizational studies describing decision-making in organized anarchies where decisions are made randomly.

Principle Of Belongness

An aspect of learning theory suggesting that items or ideas that are perceived as belonging together are more easily remembered.