You Won $150 000

question 104

Essay

You won $150 000.00 in a lottery and you want to set some of that sum of money aside for 6 years. After 6 years you would like to receive $2710.00 at the end of every 6 months for 8 years. If interest is 6% compounded quarterly, how much of your winnings must you set aside?

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior. Through operant conditioning, an individual makes an association between a particular behavior and a consequence (either a reward or punishment).

Reprimanding

The act of expressing to someone that they have done something wrong, often in a stern or formal manner.

Rude

Exhibiting or having a discourteous or impolite demeanor or behavior, often characterized by a lack of respect for others.

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a conditioned response, typically occurring when the conditioned stimulus is no longer paired with the unconditioned stimulus.