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What Is the Future Value Eight Years from Now of Each

question 64

Essay

What is the future value eight years from now of each of the following cash-flow streams if money can earn 9% compounded semi-annually?
a) A single payment of $5,000 today.
b) An ordinary annuity starting today with eight annual payments of $900.


Definitions:

Successive Approximation

A method in behaviorism used to shape complex behaviors by rewarding behaviors that are progressively closer to the target behavior.

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response.

Acquisition

In psychology, acquisition refers to the initial stage of learning or conditioning during which a response is established.

Generalization

The process of formulating general concepts by abstracting common properties of instances.

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