Find the Present Value of the Future Value

question 65

Multiple Choice

Find the present value of the future value.
-Find the required annual interest rate, to the nearest tenth of a percent, for $1100 to grow to $1400 if interest is compounded monthly for 6 years.

• A) 4.0%
• B) 0.3%
• C) 2.7%
• D) 8.1%

---

Definitions:

Acquisition Method

An accounting technique used to consolidate the financial statements of two companies after an acquisition.

Federal Law

Legislation enacted by the federal government of a country, applicable nationwide and overarching state or local laws in certain areas.

Provincial Law

Provincial law refers to legal provisions and regulations enacted by the legislative bodies of provinces or territories, governing matters within their jurisdiction.

IFRS 3

An International Financial Reporting Standard that provides guidance on accounting for business combinations, requiring acquisition-related assets and liabilities to be recorded at fair value.