Present and Future Value Tables of $1 at 11% Are

Multiple Choice

Present and future value tables of $1 at 11% are presented below.

-Spielberg Inc. signed a $200,000 noninterest-bearing note due in five years from a production company eager to do business. Comparable borrowings have carried an 11% interest rate. What is the value of this debt at its inception?

A) $200,000.
B) $178,000.
C) $118,690.
D) $222,000.