Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter II, Problem 8E
Refer to the answers given for the preceding exercise.
Required:
- 1. Refer to requirement (1) of the preceding exercise. Prepare a display similar to Exhibit II-1 to show how your accumulation grows each year to equal $5,487.50 after six years.
- 2. Refer to requirement (4) of the preceding exercise. Prepare a display similar to Exhibit II-3 to verify that $32,331 is the amount you need to fund your educational expenses.
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Draw a timeline in your notes to practice, then use the one below to help you! The Cambrian Foundation collected $49,431.67 to set up a fund for graduating students for the next 10 years. This was set up to help reduce the burden of student loans upon graduation. The first graduating class is will be eligible to apply for the funding in three years. What is the size of the end-of-year funding available if money earns 3.3% compounded semi-annually?
TOPIC: ENGINEERING ECONOMICS
SPECIFIC INSTRUCTION: Solve each problem NEATLY and SYSTEMATICALLY. Show your
COMPLETE solutions and BOX your final answers. Express all your answers in 2 decimal places.
PROBLEM:
Annual deposits were made in a fund earning 10% per annum. The first deposit was P2,000 and
each deposit thereafter was P 200 less than the preceding one. Determine the amount in the
fund after the sixth deposit.
Need help with Case C & D and Chart thanks.
Chapter II Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
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- Please see attachment and type in the correct answer ASAP with proper explanation of the each sub question given in the attachment. Will give you thumbs up only for the correct answer. Thank youarrow_forwardSubject - account Please help me. Thankyou.arrow_forwardUse the appropriate formula located on Illustration 10-1 on page 209 to solve the problem. At the end of every 3 months, Teresa deposits $1500 into an account that pays 6% compounded quarterly for 4 years. A) When this certificate matures, how much will Teresa have accumulated B) How much interest did Teresa earn? Show the use of the appropriate formulas for each part by indicating the evaluation of the formula with the information and provide the answer. Be sure to label the parts using the provided letters and organize your work neatly.arrow_forward
- (b) As an added benefit to staff, Insignia intends to start a Trust Fund to assist the children of its employees with university tuition via scholarships. The intention of the company is to assist 4 different students annually with a $10,000 grant each. The grant is expected to be increased by 5% annually and provide scholarships indefinitely. Required: i. Assuming this fund will earn 10% interest per annum, calculate the value of the fund today. ii. Insignia decides to fund this amount (calculated in (i)) via monthly deposits over the next 12 months in an enhanced savings account, after which the scholarships will begin. Assuming a return of 12%, compounded monthly, how much would Insignia need to deposit monthly over the next year, to achieve this goal? ii. Compute the effective annual rate on this enhanced savings account.arrow_forwardHal wants to establish a savings fund from which a community organization could draw $890 a year for 20 years. If the account earns 2.5 percent annual interest, what amount does he have to deposit now to achieve this goal? Use Exhibit 1B-4. (Round time value factors to 3 decimal places and final answer to the nearest dollar amount. Omit the "$" sign in your response.) Amount to be deposited $arrow_forwardOn January 1, 2018, you deposited $5,500 in a savings account. The account will earn 8 percent annual compound interest, which will be added to the fund balance at the end of each year. Required: 1. What will be the balance in the savings account at the end of 7 years? 2. What is the total interest for the 7 years? 3. How much interest revenue did the fund earn in 2018 and in 2019? Show Transcribed Textarrow_forward
- a college begins a capital campaign to create a fund to provide scholarships to worthy students, If the college wishes to provide $200,000 in scholarships per year forever, how much money should they seek to raise for the campaign. Assume the fund will earn 7% per yeararrow_forwardDone with Case A. Need help the rest.arrow_forwardA school fund establishes that the following deposits must be made: Year 1, $2,000; Year 2, $2,000 + 500; Year 3, $2,000+ (2)500; ; Year 10, $2,000 (9)500. Beginning in the 11th year, the fund will pay a $X scholarship perpetually. Assuming a 10% interest rate. How big can the scholarship payment be? .arrow_forward
- K Suppose someone wants to accumulate $65,000 for a college fund over the next 15 years. Determine whether the following investment plans will allow the person to reach the goal. Assume the compounding and payment periods are the same. The person deposits $55 per month into an account with an APR of 7%. ... Will the person meet the goal? Select the correct choice below and fill in the answer box to complete your choice. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) O A. No, because the amount that will be in the college fund, $ is less than the goal of $65,000. OB. Yes, because the amount that will be in the college fund, $ is more than the goal of $65,000. 3arrow_forward* Suppose someone wants to accumulate $65,000 for a college fund over the next 15 years. Determine whether the following investment plans will allow the person to reach the goal. Assume the compounding and payment periods are the same. The person deposits $120 per month into an account with an APR of 5%. Will the person meet the goal? Select the correct choice below and fill in the answer box to complete your choice. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) OA. No, because the amount that will be in the college fund, $ B. Yes, because the amount that will be in the college fund, $ is less than the goal of $65,000. " is more than the goal of $65,000. "arrow_forwardAronscript Suppose someone wants to accumulate $50,000 for a college fund over the next 15 years. Determine whether the following investment plans will allow the person to reach the goal. Assume the compounding and payment periods are the same. The person deposits $140 per month into an account with an APR of 6% Will the person meet the goal? Select the correct choice below and fill in the answer box to complete your choice (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed) is less than the goal of $50,000. A. No, because the amount that will be in the college fund, $ OB. Yes, because the amount that will be in the college fund, S is more than the goal of $50,000arrow_forward
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