Which of the Following Statements Is True

question 58

Multiple Choice

Which of the following statements is true?

• A) The future value of an annuity would be greater if funds are invested at the beginning of each period instead of at the end of each period.
• B) An annuity is a series of equal payments that are made, or received, forever.
• C) The effective annual rate (APR) of a loan is higher the less frequently payments are made.
• D) The future value of an annuity would be greater if funds are invested at the end of each period rather than at the beginning of each period.

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Definitions:

Behavior Modification

A psychological technique used to change or improve an individual's behaviors through reinforcement, punishment, and other strategies.

Negative Reinforcement

The strengthening of a behavior because a negative condition is stopped or avoided as a consequence of the behavior.

Positive Punishment

A method in behavioral psychology where an undesirable stimulus is introduced following a behavior to decrease the likelihood of that behavior occurring again.

Aversive Stimulus

A stimulus that is unpleasant and causes a decrease in the strength or frequency of the behavior it follows.