After Adding $2 \frac{1}{4} \%$ To a Sum of Money, the New Amount Is $45,000

question 253

Multiple Choice

After adding $2 \frac{1}{4} \%$ to a sum of money, the new amount is $45,000.00. What was the original amount of money?

• A) $43,987.50
• B) $44,009.78
• C) $2,000,000.00
• D) $46,035.81
• E) $20,000.00

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Definitions:

SMEs

Small and Medium-sized Enterprises, which are businesses with personnel numbers or financial turnover falling below certain predefined limits.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB).

Amortized

In finance, to amortize a debt means to reduce or extinguish it by making regular payments over a period of time, effectively decreasing the principal amount along with interest.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair market value of the net identifiable assets of the business.