As the winning contestant in a television game show, you are considering the prizes to be awarded. You must indicate to the sponsor which of the following two choices you prefer. Assume it is now January 1, and there is no danger whatever that the sponsor won't pay off.

Choice 1: $100,000 today.

Choice 3: $10,000 at the end of each year for the next 12 years. (i.e., you will receive $10,000 x 12 = $120,000 in total but spread evenly over the next 12 years) Which choice would you choose? (Be reminded that you will get $20,000 more in Choice 3)