Thornton Will Receive an Inheritance of $500,000 Three Years from Now.Thorton's

question 73

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 the above is within $10 of the correct answer.

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Definitions:

Roughness Grade

A classification system for the surface texture of objects, typically measured by the average machined surface roughness.

Microinches

A unit of length used in engineering and machining that equals one millionth of an inch, often used to specify surface finish.

Micrometers

Precision measuring instruments used to measure very small dimensions with high accuracy.

Quality of Finish

Refers to the surface texture, accuracy, and visual appearance of a manufactured part after production.