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:

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns, commonly through the purchase of stocks, bonds, or real estate.

Populist Party

A political party in the United States, also known as the People's Party, which formed in the late 19th century representing mainly farmers' interests, advocating for bimetallism and government control of utilities.

Coinage of Silver

The act or policy of minting currency using silver, historically a topic of significant political debate in the United States, particularly in the 19th century regarding the backing of currency.

1880s and 1890s

The decades at the end of the 19th century, characterized by significant societal, technological, and political changes worldwide.