36. Calculate cash balance at the end of July. *

1 point

b. GHC 90,500

a. GHC89,500

c. GHC 72,000

d. GHC 93,000

37. If the company maintains an end of month cash balance of GHC 100,000, what is the external finance required? *

1 point

d. GHC 7,000

c. GHC 28,000

a. GHC 10,500

b. GHC 9,500

38. A firm has inventory turnover period of 94 days, debtors collection period of 74 days and payables holding period of 67 days. What is the firms cash operating cycle? *

1 point

a. 100 days

c. 87 days

d. 60 days

b. 101 days

39. What will be the total value of GHC5,000 invested now after 3 years if the interest rate is 20% per annum? *

1 point

a. GHC 5,670

d. GHC 5,866

b. GHC 8,900

c. GHC 8,640

40. An investor puts in GHC 10,000 into an investment account for 10 years. The annual interest is 15% for the first 4 years, 12% for the next 4 years and 9% for the final 2 years. How much will the investment be worth at the end of 10 years? *

1 point

b. GHC 17,493

c. GHC 20,876

a. GHC 32,698

d. GHC16,333

41. A bank quotes 15% per annum compounded quarterly on a loan for a customer. What is the effective annual rate on the loan? *

1 point

c. 16.08%

d. 15%

a. 18%

b. 15.87%

42. You deposited an amount of GHC 10,000 in a savings account now in trust for your son who is currently 13 years. Interest is quoted at 25% per annum, payable semi-annually. How much will the account be worth on his 18th birthday? *

1 point

a. GHC 32,743

d. GHC 54,000

c. GHC 32,473

b. GHC 32,555

43. A customer has instructed his bankers to transfer GHC 400 from his current account to his savings account at the end of each year for four years. Interest rate in savings is 10% per annum. What is the size of the savings account at the end of the 4th year? *

1 point

d. GHC1,856.40

a. GHC 5,000

c. GHC 1,678.32

b. GHC 585.64

44. What is the value of a security that pays an interest of GHC 800 per annum forever if the interest rate is 20%. *

1 point

b. GHC 160

a. GHC 2,500

c. GHC 3,000

d. GHC 4,000

45. How long will it take an investment of GHC 50,000 to double if the interest rate is 10%. *

1 point

b. 7.2 years

d. 6.7 years

c. 8.9 years

a. 2 years

46. Your bank is prepared to lend you GHC 5,000 at 36% per annum to be repaid over 2 1/2 years in equal monthly instalment. *

1 point

c. GHC 433. 23

d. GHC 543.33

a. GHC 255.10

b. GHC 316.30

Use the information below to answer questions 47 and 48. Miss Addy will need GHC 30,000 to complete her dream house in 4 years time. Her brother has promised to remit her today so that she will invest in a fixed deposit account to earn 12%p.a for 4 years *

Your answer

47. How much should the brother remit today? *

1 point

d. GHC 19,065.54

a. GHC 790.09

b. GHC 8,789

c. GHC 19,605.64

48. If he decides to make equal monthly remittances for 4 years, how much will he remit monthly? *

1 point

c. GHC 197

a. GHC 790.09

b. GHC 889

d. GHC 1,065.54

49. Your company has bought an equipment costing GHC 60,000 now. The annual rates of inflation over the next 4 years are expected to be 16%, 20%, 15%nand 10%. How much would be equipment cost after 4 years? *

1 point

a. GHC 69,603

d. GHC 67,980

b. GHC 105,653

c. GHC 54,304

50. How much will an investment of GHC 20,000 worth in 10 years at an interest rate of 10% per annum payable semi-annually? *

1 point

d. GHC 69,603.44

b. GHC 67,980.98

c. GHC 53,065.95

a. GHC 54,304.89