What Is the Appropriate Interest Rate to Use When Making

question 87

Multiple Choice

What is the appropriate interest rate to use when making future value or present value calculations?

• A) The effective annual interest rate (EAR)
• B) The annual percentage rate (APR)
• C) The quoted interest rate
• D) The simple interest

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Definitions:

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment, a concept introduced by B.F. Skinner.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Spontaneous Recovery

The reappearance of a conditioned response after a period of lessened response.

Extinction

In biology, it is the end of an organism or of a group of organisms, normally a species.