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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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.
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?
Problem #11: Suppose that on January 1, 2021 the balance on a fund is $14940. Suppose that there are contributions to the
fund of $5920, $2954, and $5916 made, respectively, on the first day of March, September, and November
2021. In addition, suppose that there are withdrawals from the fund of $5099 and $9068 made, respectively, on
the first day of May and September. Finally, suppose that the balance of the fund on the last day of February,
April, August, October, and December 2021 is, respectively, $28739, $36236, $32115, $30305, and $16445.
(a) Find the dollar-weighted rate of return for the year.
(b) Find the time-weighted rate of return for the year.
(A) 5.2% (B) 5.59% (C) 5.33% (D) 5.72% (E) 5.46%
Problem #11(a): Select v
(A) 9.64% (B) 9.77% (C) 9.25% (D) 9.51% (E) 9.38%
Problem #11(b):
Select v
Chapter II Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
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