Jill Ley Took Out a Loan for $60,000 to Pay

question 75

Multiple Choice

Jill Ley took out a loan for $60,000 to pay for her child's education. The loan would be repaid at the end of eight years in one payment with interest of 6%. The total amount Jill has to pay back at the end of the loan is:

• A)$88,008
• B)$80,800
• C)$88,800
• D)$28,800
• E)None of these

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Definitions:

Noncontrolling Interest

A stake in a corporation where the shareholder owns less than a majority of the company's shares, without significant control over its strategic decisions.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but not full control.

Consolidated Financial Statements

Financial statements that present the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries as one single entity.