MANAGERIAL ACCOUNTING QUIZ S Name Score Section Problem (10 points). Calculate the indicated item for each of the following independent cases nearest whole dollar. Round all I an swers to the TIME VALUE OF MONEY PROBLEMS (1) Tom Bandura deposited $25,000 in a savings account that earns interest at an annual rate of 10% compounded monthly. The $25,000 and the interest camed must remain in the account for seven years before they can be withdrawn. How much money will be in the account at the end of the seven vears? Bill Bandura is planning to open a retirement account in which he would like to accumulate $750,000 in 25 years. If the account can eam an average of 9% per year, compounded quarterly, how much must he deposit at the beginning of each quarter in order to accomplish this? (2) (3) Bandura Medical Equipment Company has decided to establish a fund that will be used after six years to replace a production facility. The company plans to make semiannual contributions of $200,000 beginning today. The fund is expected to earn 10 % per year, compounded semiannually. How much will be in the fund after six years? (4) Bandura Manufacturing Company is considering an investment that will return $65,000 at the end of each year for 10 years. If the company demands an annual return of 12 % , how much should it be willing to pay for the investment