You Win a Prize at Your Sorority, and You Are

question 25

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 10%, the present value of option 1 is:

• A)$173.56.
• B)$190.91.
• C)$182.65.
• D)$181.80.

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Definitions:

Long-Term Memory

The aspect of memory where information is stored for an extended period, from days to decades.

Retrograde Amnesia

The inability to recall memories of events or knowledge acquired before experiencing an injury or developing a disease.

Retroactive Interference

is a psychological phenomenon where newly learned information interferes with and impairs the recall of previously learned information.

Free Recall

A process in memory psychology where an individual is asked to remember information in any order without cues.