9) Consider the following four alternatives: 1. $132 received in two years. 2. $160 received in five years. 3. $200 received in eight years. 4. $220 received in ten years. The ranking of the four alternatives from most valuable to least valuable if the interest rate is 7% per year would be: A) 1, 2, 3, 4. B) 4, 3, 2, 1. C) 3, 4, 2, 1. D) 3, 1, 2, 4.

2, 3, 1 and 4

Explanation:

The computation of the present value is shown below:

Present value = Received amount ÷ (1 + interest rate)^number of years

1.

= $132 ÷ (1 + 0.07)^2

= $115.2939121321

2.

= $160 ÷ (1 + 0.07)^5

= $114.0777887174

3.

= $200 ÷ (1 + 0.07)^8

= $116.401820913

4.

= $220 ÷ (1 + 0.07)^10

= $111.8368442696

So the rank is

2, 3, 1 and 4

This is the answer but the same is not given in the options

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.