An Initial Investment of $10,000 Is Observed Over 3 Years

question 57

Short Answer

An initial investment of $10,000 is observed over 3 years with a geometric mean return at the end of year 3 of 0.512.Determine the value of the investment after 3 years.

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Definitions:

AASB 141

An accounting standard regarding agriculture under the Australian Accounting Standards Board that guides the accounting for agricultural activity.

AASB 141

Refers to the Australian Accounting Standard on Agriculture, guiding on the accounting for agricultural activity including the recognition and measuring of biological assets.

Biological Assets

Living plants or animals that are used in agricultural activities from which agricultural produce is harvested, accounted for under specific accounting standards.

Fair Value

An estimate of the price at which an asset or liability could be exchanged in a current transaction between willing parties.