What Is the PV of an Ordinary Annuity with 5

question 122

Multiple Choice

What is the PV of an ordinary annuity with 5 payments of $4, 700 if the appropriate interest rate is 4.5%?

• A) $16, 806
• B) $17, 690
• C) $18, 621
• D) $19, 601
• E) $20, 633

---

Definitions:

Consolidated Balance Sheet

A financial statement that aggregates the assets, liabilities, and equity of a parent company and its subsidiaries into one document.

Goodwill

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

Proportionate Consolidation Method

An accounting technique used for combining the financial statements of joint ventures, where the investor's share of each line item is included proportionally.

Non-Controlling Interest (NCI)

A financial interest in a subsidiary attributed to shareholders outside of the controlling shareholder group, reflecting their share of the entity's equity that isn’t controlled by the parent company.