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

question 44

Multiple Choice

Thorton will receive an inheritance of $500,000 three years from now. Thorton's personal discount rate corresponds to a 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) $373,108
• B) $375,657
• C) $665,500
• D) $670,048

---

Definitions:

Project Costs

The total expenditures incurred in the planning, execution, and completion of a project, encompassing materials, labor, and overhead expenses.

Equipment

The necessary items for a particular purpose, including tools, machinery, and appliances.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type.

Goal Oriented

Refers to actions or processes that are directed towards achieving specific objectives or outcomes.