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

Question

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The Answer of 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

You Have a Choice Among Three Options