Tanya Williams is the new accounts manager at Southpac Bank. She has just been asked to

estimate how many new bank accounts she will generate during the next year. The Australian

economy has been growing and the bank has experienced a 10 percent increase in its

number of bank accounts over each of the past five years. In the year just ended the bank

had 10,000 accounts

The new accounts manager is paid a salary plus bonus of $50 for every new account she

generates above the budgeted amount. Thus, if the annual budget calls for 500 new

accounts, and 540 new accounts are achieved, William's bonus will be $2000 (4050).

Tanya believes that the company will continue to grow at the same rate next year as it has

in recent years. She has decided to submit a budgetary projection of 700 new accounts for

the coming year.

10,000*10%=1,000