You Win a Prize at Your Sorority, and You Are

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.