ADM 626 Topic 3 Module Assignment

Topic 3 Module

Grand Canyon University ADM 626

Module 6

Question 1.

The formula for compounding interest and principal is

A=P(1+r/n)nt

A is the total amount including the interest and principal

Where P=is the principal

r = is the rate of interest

n= the number of times compounding per year

t= number of years or time period.

A = 1,00,000(1+0.06/1)1*5

A=1,00,000(1.06)5

A= $1,00,000*1.338226

A= $1,33,823

So, after 5 years the amount to be received is $1,33,823

Question 2

EMI = p*r [(1+r)^n] / [(1+r)^n-1]

Interest rate per month is 6/12=0.5%per month

Time (n) =5*12= 60 months

Loan amount =120000

If the loan amount is P, rate of interest (monthly is r, and loan term is n the EMI will be

EMI= p*r[(1+r)^n] / [(1+r) ^ n-1]

= 120000*0.005 [(1+0.005)^60] / [(1+0.005)^60-1]

=600[(1.005)^60] / [(1.005) ^60-1]

= 600 [1.35] / [1.3488501525493-1]

= 600[1.35] /[0.348850152549304

=600[3.86985641294567]

=2321.914

Therefore, EMI will be $2321.914

Question 3

Company Acalculation

Purchase price = $105000, Annual Maintenance costs = $2000, Number of years of service = 10 years ,

Interest rate on loan= discount factor =8%

Present worth of costs= purchase price + Present value of Annual maintenance costs

= PV(rate, nper,-pmt)

Annual Maintenance expenses (PMT) = $2,000

Discount rate (rate) = 8.00%

No. of years (nper) =10

Present value of annual maintenance expenses (PV) is PV =(nper, rate,-pmt) $13,420,16

Hence , the Present worth of cost of bus of company A= 105000+13420.16

= 118420.16

Company B calculation

Purchase price = $11000, Annual Maintenance costs + $1500, No. of years of service = 10 years , Interest rate on loan = discount factor =8%

Present worth of costs= Purchase price + Present value of Annual maintenance costs

= PV(rate, nper,-pmt)

Annual Maintenance expenses (PMT) =$1,500

Discount rate (rate) = 8.00%

No. of years (nper) = 10 years

Present Value of annual maintenance expense ( PV) is PV=(nper, rate , -pmt)

= $ 10, 065.12

Present worth of costs of bus for company B is

110000+10065.12

= 120065.12

Hence Bus from company A should be selected because it has the lower present worth of costs.

Question 4

Future value of annuity due formula = p*(1+i)*{(1+r)^n-1}/r

11160407.5=P*(1+0.045)*{(1+0.045)^4-1} /0.045

11160407.5=P*4.470709726

P=$2,496,339.10

Therefore, the amount required to be deposited each year will be $2, 496,339.10

Question 5

Value of money if $550,000 invested at 5% for 5 years

= 550,000 (1+0.05)5

= 550, 000(1.05)5

= 550,000(1.276282)

=$701954.8594

Hence if the community center invest money at 5% after 5 years the community center will get $701, 954.8594 which is less than $875,000 therefore the community should wait.

Question 6

Costs of remodeling = $7200000

Annual operation cost =$200000

Expected Revenue =$1000000

Lifespan 9 years

Interest 4.25

A=P(1+0.0425)^9

=7200000×1.454

= 10471697

Net Annual Revenue = 800000×9

= $7200000

Therefore, the cost of remodeling together with the interest of $10471697 is more than the net revenue of $7200000. The remodeling should not be approved.

Module 9

Question 1

This is several shots measure which is a numerical measure and doesn’t provide a clear information on the performance of the vaccination drive
This is ratio and it provides a clear representation of the vaccination coverage. This is recommended
Number of classes doe not give information on their effectiveness.
Number of teens attending the session provides a better representation of the class effectiveness.
Number of workshop materials copied for the classes is not an effective measure
Percentage of students smoking cigarettes is an effective measure to find out the addiction of cigarettes and hence is recommended.
Percentage of state population diagnosed with lungs cancer provides a good representation of the spread of the cancer. This is recommended .
Percentage of class attendees who indicated satisfaction with the smoking-cessation class would provide the effectiveness of the classes. This is recommended.

Question 2

We would have to know the answer to some questions in order to justify the funds
The expected percentage of permit inspection that can be done in 24 hours .
Why January and February percentages goes down ? How is can this be addressed ?

If we can answer these questions and find ways to improve the service level of the department , then we can go for the optimum funding for the department.

Question 3

From looking at Figure 9.2., The director has shown what the internal target and the standard is . In few months the internal goals have been met , and the department did not get close to meet the industry’s standard. So, I think the questions above needs to be answered so that where improvement is needed and how to go about it.

Question 4 The 2014 Budget adopted by Maricopa County’s Public Defense Services Agency is not reasonable based on the following three accounts :

Dependency Case Resolved (output) percentage to Net Dependency Assignments (Demand) in Revised FY 2013 Budget was 77.17% whereas FY 2014 adopted budget was 54.22% which is a significant drop without any reasonable justification.
Efficiency measure witness a drop of 52%
Increase in Expenditure due to these factors by 61.6% . Therefore, the adopted budget is not reasonable .

Question 5

To calculate the drop-out rate , divide the No. of seniors who couldn’t complete their snr. Yeas to the No. of seniors. Enrolled in the school. We can see that the drop out rate has gone down significantly from 9.22% in year 2010 to 2.63% in the year 2014. Average dropout rate was 4.83% in 2014.

The failure rate is calculated by the No. of Seniors. Who completed their senior year minus the No. of high school students graduating , divided by the No. of seniors who completed their senior year ? Average failure rate is 4.76% which is higher than 4.00% recorded in 2014.

Therefore, the official needs to answer the high rate of failure and come up with solutions to mitigate the high rate of drop out also.

Module 13