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

PV of $1 FV of $1 PVA of $1 FVA of$1

1. 0.90090 1.11000 0.90090 1.0000
2. 0.81162 1.23210 1.71252. 2.1100
3. 0.73119 1.36763 2.44371 3.3421
4. 0.65873 1.51807 3.10245 4.7097
5. 0.59345 1.68506 3.69590 6.2278
6. 0.53464 1.87041 4.23054 7.9129

Spielberg Inc. signed a $150,000 noninterest-bearing note due in two 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?

Multiple Choice

• $133,500.
• $121,743.
• $150,000.
• $166,500.