Compounding frequency and time value: You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years. a.

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23.07.2022 - 22:41

Compounding frequency and time value: You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years. a.

Question:

Compounding frequency and time value:

You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years.

a. How much will you have in the account at the end of 10 years if interest is compounded (1) annually, (2) semiannually, (3) daily (assume a 365-day year), and (4) perpetually?

b. What is the effective annual rate (EAR) for each compounding period in part a?

c. How much greater will your IRA balance be at the end of 10 years if interest is compounded perpetually, rather than annually?

d. How does the compounding frequency affect the future value and effective annual rate for a given deposit? Explain in terms of your findings in parts a through c.

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Lillie April 8, 2023 в 08:26

The answer is c. Cognitive Behavior Therapy (CBT). Compulsive hoarding is a challenging disorder to treat since those who suffer from it may not initially recognize the severity of their condition. However, CBT has been shown to be an effective treatment approach for compulsive hoarders. CBT aims to correct distorted thinking patterns by identifying negative thoughts and beliefs that contribute to hoarding and replacing them with healthier ones. It also focuses on actively modifying hoarding behavior by helping individuals develop organizational and decision-making skills. By combining both approaches, CBT can address both the underlying issues that contribute to hoarding and the tangible behaviors that perpetuate the disorder.

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