Use the Following to Answer Questions

question 13

Multiple Choice

Use the following to answer questions
Bob Lower wants to retire in 10 years. At that time he wants to have a lump sum accumulated that would allow him to withdraw $35,000 a year for the next 20 years. Assume that Bob earns an after-tax return of eight percent. Ignore the inflation in these calculations.
- If an investor can earn nine percent on his money, how many years will it take to double the principal?

• A) 9
• B) 6
• C) 7
• D) 12
• E) None of the above answers are correct

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Definitions:

Reinforcement Value

How enticing a particular reward is.

External Locus

The belief that one's life events are largely controlled by external forces or fate rather than one's own efforts.

Unconditioned Response

In classical conditioning, it is the automatic, natural reaction elicited by an unconditioned stimulus without prior learning or conditioning.

Conditioned Response

An automatic response established by training to an ordinarily neutral stimulus.