# North Carolina State University Irwin College of Engineering can earn 4% on its investments, how much should be in its savings account to fund one \$5,000 scholarship each year for the next 10 years?

## Answers

Answer 1
Answer:

Answer:

The amount that should be in its savings account is \$40,554.48.

Explanation:

To calculate this, formula for calculating the present value of an ordinary annuity is employed as follows:

PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)

Where;

PV = Present value of or amount in the saving =?

P = yearly scholarship payment = \$5,000

r = interest rate = 4%, 0.04

n = number of years = 10

Substitute the values into equation (1) to have:

PV = \$5,000 * [{1 - [1 / (1 + 0.04)]^10} / 0.04]

PV = \$5,000 * [{1 - [1 / 1.04]^10} / 0.04]

PV = \$5,000 * [{1 - 0.961538461538461^10} / 0.04]

PV = \$5,000 * [{1 - 0.675564168825795} / 0.04]

PV = \$5,000 * [0.324435831174205 / 0.04]

PV = \$5,000 * 8.11089577935512

PV = \$40,554.48

Therefore, the amount that should be in its savings account is \$40,554.48.

Answer 2
Answer:

### Final answer:

The present value of an annuity formula can be used to determine the amount needed in the savings account.

### Explanation:

To determine how much should be in its savings account to fund one \$5,000 scholarship each year for the next 10 years, we can use the formula for the present value of an annuity. The formula is:

PV = PMT * ((1 - (1 + r)^(-n)) / r)

Where PV is the present value, PMT is the payment amount, r is the interest rate, and n is the number of periods. In this case, the payment amount is \$5,000, the interest rate is 4% (or 0.04), and the number of periods is 10. Plugging these values into the formula, we get:

PV = \$5,000 * ((1 - (1 + 0.04)^(-10)) / 0.04) = \$42,179.84

Therefore, North Carolina State University's Irwin College of Engineering should have \$42,179.84 in its savings account to fund one \$5,000 scholarship each year for the next 10 years.

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## Related Questions

Managerial accountants could prepare all of the following reports except a.a sales report targeting monthly sales and potential bonuses b.a performance report identifying amounts of scrap c.a control report comparing direct material usage over time d.an annual report for external regulators such as the SEC

### Answers

Answer: d.an annual report for external regulators such as the SEC

Explanation:

A managerial accountant is someone who records and analyzes the financial information for an organization. The data analysed will then be used to form financial decisions which can help the organization's growth.

Managerial accountants prepared ls financial information for internal reporting and not external reporting. Therefore, of the options given, the managerial accountants can prepare all the reports except the annual report for external regulators such as the SEC.

Marshall Enterprises charged the following amounts of overhead to jobs during the year: \$20,000 to jobs still in process, \$60,000 to jobs completed but not sold, and \$120,000 to jobs finished and sold. At year-end, Marshall Enterprise's Factory Overhead account has a credit balance of \$5,000, which is not a material amount. What entry should Marshall make at year-end?a. No entry is needed.
b. Debit Factory Overhead \$5,000; credit Cost of Goods Sold \$5,000.
c. Debit Cost of Goods Sold \$5,000; credit Factory Overhead \$5,000.
d. Debit Factory Overhead \$5,000; credit Work in Process Inventory \$5,000.
e. Debit Factory Overhead \$5,000; credit Finished Goods Inventory \$5,000.

### Answers

Answer:

the correct answer is

b. Debit Factory Overhead \$5,000; credit Cost of Goods Sold \$5,000.

good luck

The Miller Company earned \$133,000 of revenue on account during Year 2. There was no beginning balance in the accounts receivable and allowance accounts. During Year 2, Miller collected \$87,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account. The net realizable value of Miller's receivables at the end of Year 2 was:

### Answers

Answer:

The net realizable value of Miller's receivables at the end of Year 2 was:  \$42,010

Explanation:

Open a Trade Receivable Account as follows :

Debits :

Revenue \$133,000

Totals      \$133,000

Credits:

Cash        \$87,000

Balance   \$46,000

Totals      \$133,000

Note that Allowance for Doubtful debts is estimated at 3% of the Company`s Sales on Account

Allowance for Doubtful debts = \$133,000 × 3%

= \$ 3, 990

Net realizable value of Miller's receivables

Trade Receivable Balance                \$46,000

Less Allowance for Doubtful Debts    \$3,990

Trade Receivables                              \$42,010

### Final answer:

The net realizable value of Miller Company's receivables at the end of Year 2 is calculated by estimating bad debt and subtracting it from the ending accounts receivable. The estimated bad debt is 3% of sales, leading to a net realizable value of \$42,010.

### Explanation:

The question revolves around calculating the net realizable value of accounts receivable for the Miller Company at the end of Year 2. First, we need to calculate the estimated bad debt. The company estimates that 3% of its sales on account will be uncollectible, which equates to \$133,000 * 0.03 = \$3,990. After subtracting the cash collected from receivables, \$133,000 - \$87,000, we get ending accounts receivable of \$46,000. Finally, we deduct the estimated bad debts from ending accounts receivable to obtain the net realizable value, which is \$46,000 - \$3,990 = \$42,010.

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Explain what a literature review is.​

### Answers

It is a paper that presents the current knowledge including substantive findings.

Using the interest formula, compute the interest and maturity values for each of the following notes: Principal Interest Term Rate \$4,000 11.5% 60 days \$10,000 11.75% 90 days \$6,500 12.75% 60 days \$900 12.25% 120 days

### Answers

Answer:

The answer is:

A: I=\$76,67    MV=\$4076,67

B: I=\$293,75  MV=\$10293,75

C: I=\$138,125 MV=\$6638,125

D: I=\$36,75    MV=\$936,75

Explanation:

Notes are often a key component of how a business finances its operations. For purposes of accounting, it's important to be able to calculate the maturity value of a note to know how much a business will have to pay or receive when the note comes due.

In general, notes are a form of short-term commercial financing. The maturity value is the amount of money that the company would receive when the note comes due.

When you know the principal amount, the rate, and the time, the amount of interest can be calculated by using the formula:

I = P*r*t

I= Total interest

P= principal

r= interest rate

t= time

To calculate the Maturity Value you need to sum the principal to the total interest accumulated over time.

Maturity Value= Principal + Interest

In this exercise:

A:

Principal: \$4000    r=11,5%       t=60 days

I=4000*0,115*(60/360)= \$76,67

Maturity Value= 4000 + 76,67= \$4076,67

B:

Principal: \$10,000          r=11.75%        t=90 days

I=10000*0,1175*(90/360)= \$293,75

Maturity Value= 10000+ 293,75= \$10293,75

C:

Principal= \$6,500   r=12.75%          time=60 days

I=6500*0,1275*(60/360)= \$138,125

Maturity Value= 6500+ 138,125= \$6638,125

D:

Principal= \$900     r= 12.25%     time=120 days

I=900*0,1225*(120/360)= \$36,75

Maturity Value= 900+ 36,75= \$936,75

Gelb Company currently manufactures 51,500 units per year of a key component for its manufacturing process. Variable costs are \$5.15 per unit, fixed costs related to making this component are \$65,000 per year, and allocated fixed costs are \$78,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for \$3.90 per unit. Calculate the total incremental cost of making 51,500 units and buying 51,500 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier?

### Answers

Answer:

\$343,725; \$200,850

Explanation:

(a) The total incremental cost of making 51,500 units is calculated as below:

Total Relevant Costs:

= Variable Cost Per Unit + Fixed Manufacturing Costs

= (Relevant Amount Per Unit × No. of units) + Fixed Manufacturing Costs

= (\$5.15 × 51,500) + \$78,500

= \$265,225 + \$78,500

= \$343,725

Therefore, the total incremental cost of making 51,500 units is \$343,725.

(b) The total incremental cost of buying 51,500 units is determined as below:

Total Relevant Costs = Purchase Price Per Unit × No. of units

= \$3.90 × 51,500

= \$200,850

Therefore, the total incremental cost of buying 51,500 units is \$200,850.

(c) The company should buy the component from outside supplier as it results in a lower total incremental cost of \$200,850.