Patrick wants to encourage students to study accounting so he sets up a scholarship to pay all his accounting students $5,000 upon successful completion of managerial accounting. However, the money is not payable to students until they obtain a Master in Accounting from an accredited university. After completing managerial accounting, it takes Betty 5 years to obtain a Master in Accounting. How much will Patrick owe her if the investment return is 10% annually?

A) Calculate the amount by using simple multiplication.

B) Calculate using the future value formula FV = PV (1+i)n C) Calculate using the TVM table.