Ray has six hours before he goes to bed on a school night. he plans to spend an hour surfing the internet, two hours playing his favorite game, two hours watching tv, and one hour doing his homework. however, some of the math problems in his homework are extremely difficult, and it will take him more than two hours to finish them. he knows his teacher won’t give him any credit for the work unless it's completely finished, and it's important that he get a good grade in the class. which of these options for dealing with this situation are a trade-off of ray’s time? 1) he will spend only one hour on homework and leave out what he can’t finish. 2) he will spend one extra hour on homework and give up watching tv. 3) he will finish his homework while he is watching tv. 4) he will play his favorite game for one hour and do homework for two hours. 5) he will ask his brother to him with his homework.

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.