Solve again w/o excel. 5-2It takes $10,000 to put on the local art festival each year. Immediately before_this year's festival,the sponsoring committee determined that it had $60,000 in an account paying 8% interest. Afterthis year, how many more festivals can be sponsored without raising more money? Thinkcarefully!Solution60,000 - 10,000 = 10,000(P/A, 8%, n)(P/A, 8%, n) = 50,000/10,000= 5From the i = 8% table n = 6This is the number of festivals after this year's. There will be some money left over but notenough to pay for a7thyear.

Present value annuity factor is used to compute the present value of an annuity. Interest is the…

Answered: this year, how many more festivals can…

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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24. FIRE TRUCK A volunteer fire department anticipates purchasing a fire truck in 3 years. Today it would cost $625,000, but the cost is increasing at 4% per year. Find the semian- nual payments needed to accumulate funds to purchase the truck if funds earn 6% com- pounded semiannually. Round to the nearest dollar at each step.
The community theater spends $10,000 annually to produce a musical extravaganza. Immediately before this year's extravaganza, the theater had a balance of $60,000 in an account paying 4% interest. After this year, how many extravaganzas can be sponsored without raising more money?
You want to create an endowment income of $35,000 per year for Oxtordshire Charity, but the Tirst payment will not be made until the 4th year's time. a. If you can earn a return of 8% APR on your investment, and if the payment is made on a monthly basis, calculate how much to invest now? $5,133,086.81 B. $4,133,086.81 $5,233,086.81 $4,233,086.81 $5,250,000.81
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PERFORMANCE TASK NO. 4 Solve the following problems completely. Read and understand the situation below, then answer the question or perform the tasks that follow. 1. A group of college students decided to invest the money they earned from the fund-raising project. After 6 months from today, they want to withdraw from this fund P 10,000.00 quarterly for 1 year to fund for community service. How much is the present total deposit if the interest rate is 4% converted quarterly? 2. A company offers a deferred payment option for the purchase of any furniture. Gladys plans to buy a dining table set with a monthly payment ofP 4,000.00 for 2 years. The payment will start at the end of 3 months. How much is the cash price of the dining set if the company will give 10% compounded monthly?
Three Smiles, Inc. wants to ensure that its charity dental practice can go on forever. They estimate that expenses next year will be $300,000 and then rise by 3% per year forever. Assuming an interest rate of 8%, how much does Three Smiles have to invest to ensure that the dentist practice can go on forever? a) $20,000,000 b) $12,000,000 c) $3,000,000 d) $6,000,000
MY NOTES ASK YOUR TEACHER A business must raise $50,000 in 9 years. What should be the size of the owners' quarterly payment to a sinking fund paying 4% compounded quarterly? (Round your answer to the nearest cent.) 2$ Need Help? Read It
The New York Soccer Association would like to accumulate R10,000 by the end of 4 years from now to finance a big soccer weekend for its members. The Association currently has R2,500 and wishes to raise the balance by arranging annual fund-raising events. How much money should they raise at each annual fund-raising event assuming 8 percent rate of interest?
12–30. Treasure Mountain International School in Park City, Utah, is a public middle school interested in raising money for next year’s Sundance Film Festival. If the school raises $15,000 and invests it for 1 year at 3% interest compounded annually, what is the APY earned (round to nearest whole percent) PROVIDE THE FOLLOWING FOR EACH PROBLEM N= I= PV= PMT= FV= C/Y= P/Y =
Student Society Club has implemented a program to recycle all plastic drink cups used during the Annual UCSI Book's fair. Their goal is to generate RM3, 000 by annually in 5 years life of the recycle program's. Each recycled cup can be sold for RM0.02. How many cups must be recycled at the end of year to meet this goal? Assume the plastic cup usage at the end of year with the 1% interest rate and draw the cash flow diagram.
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this year, how many more festivals can be sponsored without raising more money? Think carefully!