The committee decided to secure a loan of $2,400,000 for the overall project. They got two offers from banks. - MC bank - pay in 24 months, $100,000 p/month of repayment, at an annual simple interest rate of 5% for the total loan - CS bank - pay in 16 months, $150,000 p/month of repayment at, an annual compound interest rate of 6% for the total loan The committee needs to decide which bank they should go with. So, they hired you as their financial advisor. 4. Create two amortization tables showing Payment number, Payment, Interest, Principal Reduction , Balance and total payments for Simple interest and Compound interest. 8. The city expects the population in the Residential Infrastructure area to grow exponentially at a rate of 2% per year. a. Calculate the projected population after 10 years if the current population is 50,000 (define a recurrence relation to answer this question). b. Draw a graph illustrating the population growth over 10 years. The city planning committee is allocating funds for a sustainable urban development project. e total budget for the project is $3,000,000 (without GST). The committee has divided the udget among three key areas: Residential Infrastructure, Commercial Zones, and Green Spaces. 1. The committee decides to allocate budget over the three areas at the ratio of 4:3:1. Divide the total budget based on the ratio and identify the amount allocated for each key area. a. What percentage of the total budget is allocated to Residential Infrastructure compared to Commercial Zones? b. If the budget for Green Spaces is increased to $400,000, by what percentage has it been increased? C. After the increase made in part b, what is the new ratio of the budget allocated among the three key areas?

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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The committee decided to secure a loan of $2,400,000 for the overall project. They got two offers from banks. - MC bank - pay in 24 months, $100,000 p/month of repayment, at an annual simple interest rate of 5% for the total loan - CS bank - pay in 16 months, $150,000 p/month of repayment at, an annual compound interest rate of 6% for the total loan The committee needs to decide which bank they should go with. So, they hired you as their financial advisor. 4. Create two amortization tables showing Payment number, Payment, Interest, Principal Reduction , Balance and total payments for Simple interest and Compound interest. 8. The city expects the population in the Residential Infrastructure area to grow exponentially at a rate of 2% per year. a. Calculate the projected population after 10 years if the current population is 50,000 (define a recurrence relation to answer this question). b. Draw a graph illustrating the population growth over 10 years. The city planning committee is allocating funds for a sustainable urban development project. e total budget for the project is $3,000,000 (without GST). The committee has divided the udget among three key areas: Residential Infrastructure, Commercial Zones, and Green Spaces. 1. The committee decides to allocate budget over the three areas at the ratio of 4:3:1. Divide the total budget based on the ratio and identify the amount allocated for each key area. a. What percentage of the total budget is allocated to Residential Infrastructure compared to Commercial Zones? b. If the budget for Green Spaces is increased to $400,000, by what percentage has it been increased? C. After the increase made in part b, what is the new ratio of the budget allocated among the three key areas?

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