Thorton Will Receive an Inheritance of $400,000 Three Years from Now.Thorton's

question 45

Multiple Choice

Thorton will receive an inheritance of $400,000 three years from now.Thorton's discount rate is 10% interest rate compounded semiannually.Which of the following values is closest to the amount that Thorton should accept today for the right to his inheritance?

• A)$273,108.
• B)$275,657.
• C)$298,486.
• D)$370,048.
• E)None of the above is within $10 of the correct answer.

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