What Present Amount Is Equivalent to $100 Received at the End

question 13

Multiple Choice

What present amount is equivalent to $100 received at the end of 5 years, given an interest rate of 16%?

• A)$47.60
• B)$327.40
• C)$40.20
• D)$163.60
• E)$32.30

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Definitions:

Consolidated Balance Sheet

A financial statement showing the aggregated financial position of a parent company and its subsidiaries.

Buildings

Buildings refer to structures that are permanently constructed or erected on land, serving as places for residence, business, or other purposes.

Trial Balance

A bookkeeping report that lists the balances of all ledgers in two columns, debits and credits, to verify the arithmetic accuracy of the entries.

Goodwill

An intangible asset representing the excess value of a purchased company over the fair market value of its identifiable tangible and intangible assets.