Jorge Deposited $1,000 into an Account Three Years Ago

question 45

Multiple Choice

Jorge deposited $1,000 into an account three years ago.The first two years he earned 5 percent interest;the third year he earned 6 percent interest.How much money does Jorge have in his account today?

• A)$1,157.90
• B)$1,168.65
• C)$1,176.00
• D)None of the above are correct to the nearest cent.

---

Definitions:

Financial Position

A snapshot of what a company owns and owes, represented on the balance sheet, including assets, liabilities, and equity at a specific point in time.

Date of Acquisition

The exact date on which one company obtains control of another, which is crucial for financial reporting and integration processes.

Fair Value Method

An accounting approach that measures and reports assets and liabilities at their estimated market value.

Proportionate Interest Goodwill Method

An accounting approach that allocates goodwill based on the proportionate interests of existing owners and new investors in a combination.