Question

Please use excel to answer the question.

The admissions director of an engineering college has $400,000 in scholarships each year from an endowment to offer to high-achieving applicants. The value of each scholarship offered is $25,000 (thus, 16 scholarships are offered). The benefactor who provided the money would like to see all of it used each year for new students. However, not all students accept the money, some take offers from competing schools. If they wait until the end of the admission deadline to decline the scholarship, it cannot be offered to someone else because any other good students would already have committed to other programs. Consequently, the admissions director offers more money than available in anticipation that a percentage of offers will be declined. If more than 16 students accept the offers, the college is committed to honoring them, and the additional amount has to come out of the dean's budget. Based on prior history, the percentage of applicants that accept the offer is about 60%. Develop a spreadsheet model for this situation to evaluate how much money must be allocated from the dean's budget based on the number of scholarships offered, 50. Write Excel formulas for the following spreadsheet model B с А Number of Offers 2 Acceptance Percentage 3 Scholarship Amount 4 Accepted Scholarships 5 Available Scholarships 6 Extra Funds Needed 60% $25,000 per student V Complete the following spreadsheet model to evaluate the extra funds needed.

Answer 1

We have Number of offers = 50

A B B С 1 2 3 Number of Offers Acceptance Percentage Scholarship Amount Accepted Scholarship Available Scholarship Extra Funds Needed 50 60% 25,000 per student 30 4,00,000 3,50,000 4 5 6

Accepted scholarships = 60% of 50 = 30

Total funds needed= 30* 25,000 = 750,000

Funds available = 400,000

Extra funds needed = 750,000 - 400,000 = 350,000