Molly borrows money by promising to make a single payment of $100,000 at the end of 5 years. How much money is Molly able to borrow if the interest rate is 10%, compounded semiannually? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
A) $38,550
B) $78,350
C) $62,090
D) $74,850
E) $61,390
E) $61,390
Explanation: The PV factor on the Present Value table when n =10 and i = 5% is 0.6139
Present Value = Future Value * PV Factor
Present Value = $100,000 * 0.6139 = $61,390
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