Molly Borrows Money by Promising to Make a Single Payment

Multiple Choice

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) $61,390
B) $62,090
C) $38,550
D) $74,850
E) $78,350