You Just Won the Lottery

question 91

Multiple Choice

You just won the lottery.You have a choice of three different prize options.
Option #1: receive $1,200 immediately;
Option #2: receive $1,500 a year from now;
Option #3: receive $1,800 five years from now.
If the interest rate is 15% the ranking of the options,from the lowest present value to the highest is

• A)Option #2,Option #3,Option #1
• B)Option #3,Option #1,Option #2
• C)Option #1,Option #2,Option #
• D)Option #1,Option #3,Option #2
• E)Option #3,Option #2,Option #1

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Definitions:

Episodic Memory

A form of enduring memory that is concerned with remembering distinct occurrences, contexts, and personal experiences.

Episodic Long-term Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences.

Personal Life

Aspects of a person's life that are primarily personal and private, such as relationships, family, and hobbies.

Short-term Memory

A cognitive function that retains a small amount of information for a short period of time, distinct from long-term memory.