One year ago, Deltona Motor Parts deposited $16,500 in an investment account for the purpose of buying new equipment three years from today. Today, it is adding another $12,000 to this account. The company plans on making a final deposit of $20,000 to the account one year from today. How much will be available when it is ready to buy the equipment, assuming the account pays 4.5 percent interest?
a. $53,408
b. $55,211
c. $55,997
d. $56,792
e. $57,232
The Sales Department had been allocated $20,000 for the year.
The actual expenses incurred in the year were:
Transport $5,000
Advertising $3,500
Travel Expenses $1,700
Salary $10,000
Other expenses $ 2,300
Has there been an over budgeting or under budgeting, and by how much?
A. over budgeting by $2,500
B. under budgeting by $2,500
C. over budgeting by $22,500
D. under budgeting by $12,500