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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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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
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.
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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