A Contract Requires Payments of $1,500, $2,000, and $1,000 in 100

question 66

Short Answer

A contract requires payments of $1,500, $2,000, and $1,000 in 100, 150, and 200 days, respectively, from today. What is the value of the contract today if the payments are discounted to yield a 3.5% rate of return?

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Definitions:

Cognitive Therapists

Specialists in psychology who focus on modifying dysfunctional emotions, behaviors, and thoughts through a goal-oriented, systematic approach.

Depressed Clients

Individuals seeking therapy or counseling services who are suffering from depression, characterized by persistent sadness and loss of interest in activities.

Negative Circumstances

Situations or conditions that adversely affect a person's state of being, potentially leading to negative outcomes or emotions.

Token Economy

An operant conditioning procedure in which individuals earn tokens for exhibiting desired behavior which can later be exchanged for rewards.