You Win a Prize at Your Sorority and You Are

question 29

Multiple Choice

You win a prize at your sorority and you are given the following two payoff options: Option 1 is to receive $100 one year from today and $100 two years from today. Option 2 is to receive $180 today. If the annual interest rate is 5%, the present value of option 1 is:

• A)$176.56.
• B)$185.94.
• C)$190.48.
• D)$195.24.

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A theory of motivation that proposes an individual's behavior is an external display of the desire to satisfy physiological needs.

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