The Amount That Park Ridge Would Report for Expenditures (And

question 20

Multiple Choice

The amount that Park Ridge would report for expenditures (and encumbrances, if applicable) in its 2007 General Fund Statement of Revenues, Expenditures and Changes in Fund Balances (GAAP Basis) would be:

• A) $11,400,000
• B) $11,800,000
• C) $11,900,000
• D) $12,300,000

---

Definitions:

Present Value

The current value of a future sum of money or stream of cash flows, discounted at a specific interest rate.

Compounded Quarterly

Refers to the method of calculating interest where the accumulated interest is added to the principal amount at the end of each quarter, and then new interest is calculated on the new total.

Compound Interest Tables

Tables used to find the future value of an investment based on compound interest, which includes interest earned on both the principal and previously earned interest.

Interest Rate

The rate at which a borrower pays interest for borrowing money from a lender.