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
GIPHY App Key not set. Please check settings