You Have a Choice Among Three Options

question 97

Multiple Choice

You have a choice among three options. Option 1: receive $900 immediately. Option 2: receive $1,200 one year from now. Option 3: receive $2,000 five years from now. The interest rate is 15 percent. Rank these three options from highest present value to lowest present value.

• A)Option 1; Option 2; Option 3
• B)Option 3; Option 2; Option 1
• C)Option 2; Option 3; Option 1
• D)Option 3; Option 1; Option 2

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Definitions:

Obsessive-Compulsive Disorder

A disorder characterized by unwanted repetitive thoughts (obsessions) and/or actions (compulsions).

Compulsive Behaviors

Actions repeatedly performed in a ritualistic manner, often in response to an obsessive thought or anxiety, despite a desire to resist them.

Reinforcement

In behavioral psychology, the process of encouraging or establishing a pattern of behavior by offering rewards or consequences.

Fear-Learning Experiences

Psychological processes by which individuals learn to fear something through direct experiences or observations.