If You Were to Put $1,000 in the Bank at 6

question 34

Multiple Choice

If you were to put $1,000 in the bank at 6% interest each year for the next 10 years, which table would you use to find the ending balance in your account?

• A) present value of $1
• B) future value of $1
• C) present value of an annuity of $1
• D) compound sum of an annuity of $1

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Definitions:

Noncontrolling Interest

An equity interest in a subsidiary held by investors other than the parent company, reflecting a share of ownership not providing control.

Goodwill

A non-tangible asset formed during the acquisition of a company for a sum greater than the fair value of its net assets that can be identified.

Equity Method

An accounting technique used to record investments in other companies, where the investment is shown as an asset and changes in the investment's value are reflected in profits or losses.

Goodwill

An intangible asset that represents the excess of the purchase price over the fair market value of acquired net assets during a business acquisition.