Using the Following Partial Table of Present Value of $1

question 73

Multiple Choice

Using the following partial table of present value of $1 at compound interest, determine the present value of $20,000 to be received three years hence, with earnings at the rate of 10% a year. $$\begin{array} { c c c c } \text { Year } & 6 \% & 10 \% & 12 \% \\\hline 1 & 0.943 & 0.909 & 0.893 \\2 & 0.890 & 0.826 & 0.797 \\3 & 0.840 & 0.751 & 0.712 \\4 & 0.792 & 0.683 & 0.636\end{array}$$

• A) $14,240
• B) $16,800
• C) $15,020
• D) $15,840

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Definitions:

Consolidated Balance

The combined balance sheets of a parent company and its subsidiaries, providing a complete picture of the financial condition of the entire group.

Common Stock

A type of equity security that represents ownership in a corporation, with holders usually having voting rights to elect the board members.

Book Value

The amount of an asset's value as recorded in the company's books, representing its initial cost minus any depreciation, amortization, or impairment costs.

Acquisition

The act of acquiring control of another company or business unit by purchasing its shares or assets.