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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