following estimated expenditures: P1,000,000 at the end of 2001 P1,200,000 at the end of 2002 P1,500,000 at the end of 2003 To accumulate the required funds, it has establi: uniform annual deposits, the first deposit has been made the fund is 2% per annum. Calculate the following: A. Annual deposit B. The balance in the fund on Jan. 1, 2002.
following estimated expenditures: P1,000,000 at the end of 2001 P1,200,000 at the end of 2002 P1,500,000 at the end of 2003 To accumulate the required funds, it has establi: uniform annual deposits, the first deposit has been made the fund is 2% per annum. Calculate the following: A. Annual deposit B. The balance in the fund on Jan. 1, 2002.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 3SEQ
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Question
Answer the following question. Use the given formula.
![FORMULA (s)
о 1 2 3...n
o 1 2
3... n
A[(1+i)"-1]
Where: i = interest per period
n =number of periods
F =
i
A = uniform series compound
A[(1+i)" – 1]
(1+ i )" i
P =
amount factor
PRESENT WORTH OF PERPETUITY:
A
P](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ce3d9cf-1b06-49cf-ad5e-a0f9cb906a35%2F392e4f35-a75a-4fea-a540-fe9d96c62f78%2Fhpzb4ea_processed.jpeg&w=3840&q=75)
Transcribed Image Text:FORMULA (s)
о 1 2 3...n
o 1 2
3... n
A[(1+i)"-1]
Where: i = interest per period
n =number of periods
F =
i
A = uniform series compound
A[(1+i)" – 1]
(1+ i )" i
P =
amount factor
PRESENT WORTH OF PERPETUITY:
A
P
Transcribed Image Text:10. Excel Institute Inc. is expanding its school facilities starting 2001. The program requires the
following estimated expenditures:
P1,000,000 at the end of 2001
P1,200,000 at the end of 2002
P1,500,000 at the end of 2003
To accumulate the required funds, it has established a sinking fund constituting of 15
uniform annual deposits, the first deposit has been made at the end of 1992. The interest rate of
the fund is 2% per annum. Calculate the following:
A. Annual deposit
B. The balance in the fund on Jan. 1, 2002.
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