Mary Needs to Have $20,000 One Year from Today

question 154

True/False

Mary needs to have $20,000 one year from today.The formula to compute the amount of money that must be invested today is future value ÷ (1 − interest rate).

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Definitions:

Noncontrolling Interest

An ownership interest in a corporation where the stake is not large enough to exert control over the company's policies or decisions, also known as minority interest.

Annual Amortization

Refers to the gradual charging to expense of the cost of an intangible asset over the useful life of the asset.

Consolidated Financial Statements

Financial statements that aggregate the financial position and results of operations of a parent company and its subsidiaries.

Voting Common Stock

Shares that give the shareholder the right to vote on corporate matters such as the election of the board of directors.