Thornton Will Receive an Inheritance of $500,000 Three Years from Now

question 32

Multiple Choice

Thornton will receive an inheritance of $500,000 three years from now. Thorton's discount rate is 10% compounded semiannually. Which of the following values is closest to the amount that Thornton should accept today for the right to his inheritance?

• A) $373,108.
• B) $375,657.
• C) $665,500.
• D) $670,048.
• E) None of these. is within $10 of the correct answer.

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Definitions:

Moral Development

The growth process in individuals whereby they progressively adopt more mature ethical principles and social attitudes, understanding right from wrong in increasingly sophisticated ways.

Key Behaviors

Fundamental actions or patterns of actions that contribute to the achievement of specific objectives or outcomes.

Stages

Refers to the different phases or steps within a process or development cycle.

Moral Development

Refers to the process through which individuals develop the ability to differentiate right from wrong and to develop attitudes and behaviors that are socially acceptable.