Suppose That You Want to Create a "Retirement Party Fund

question 9

Multiple Choice

Suppose that you want to create a "retirement party fund" for yourself and place $50 in a bank account for each of the next 20 years.If that account earns an annual rate of return of 7%,how much will be in your retirement party fund at the end of the twentieth year?

• A)$1,529.70
• B)$2,679.22
• C)$1,032.57
• D)$2,049.77

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Definitions:

Consolidations

The process of combining multiple financial statements or businesses into one comprehensive financial report or corporate entity, typically to provide a more unified view of financial performance or corporate structure.

Goodwill Impairment

The decrease in the value of goodwill on a company's balance sheet when the carrying amount exceeds the fair value.

Private Companies

Businesses whose ownership is private, meaning their shares are not traded on public stock exchanges, and often their financial information is not disclosed to the public.

Amortization Expense

The gradual reduction of a debt over time or the allocation of the cost of an intangible asset over its useful life.