A Twenty-Year Note for $1000

question 67

Multiple Choice

A twenty-year note for $1000.00 bearing interest at 9% compounded monthly is discounted at 5% compounded quarterly four years and six months before maturity. Find the proceeds of the note.

• A) $6009.15
• B) $4805.10
• C) $133.07
• D) $4800.65
• E) $4741.93

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Definitions:

Nagging

The act of persistently annoying or finding fault in someone, often to prompt an action or change.

Aversive Conditioning

A method of behavior conditioning in which an undesirable behavior is paired with an aversive stimulus to reduce the behavior's occurrence.

Target Response

The desired behavior or outcome that is aimed for in a psychological experiment or behavioral intervention.

Likelihood

The probability or chance that a particular event will occur.