What Is the Present Value of a Payment of $100

question 187

Multiple Choice

What is the present value of a payment of $100 one year from today if the interest rate is 5 percent?

• A)$95.50
• B)$95.24
• C)$95.00
• D)None of the above are correct to the nearest cent.

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Definitions:

Skinner Box

An experimental apparatus developed by B.F. Skinner for studying behavioral conditioning in animals, typically involving rewards and/or punishments.

Rubik's Cube

A 3D combination puzzle invented by Ernő Rubik in 1974, consisting of a cube with each of its six faces covered by nine stickers, each of one of six solid colors.

Law of Effect

A principle stating that behaviors followed by satisfying consequences are more likely to be repeated, while those followed by unsatisfying consequences are less likely to be repeated.

Reinforcement

In behavioral psychology, a process by which a behavior is strengthened or increased by its consequences.