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(a) Anonyam is considering paying GHe 100 into a fund on a monthly basis for Two years starting in one year's time. The interesteamed will
(a) Anonyam is considering paying GHe 100 into a fund on a monthly basis for Two years starting in one year's time. The interesteamed will be 2% per month. Once all these payments have been made, the investment will be transferred immediately to an account that will earn interest at 10% per annum until maturity. The fundi matures in five years' time after the last payment is made into it. Calculate the terminal value of the fund in 7 years' time (10 MARKS) (b) Mr. Smart heard about the Ghana Government's 'Smart Borrowing concept in 2012 and borrowed GH 15,000 to have a successful wedding and he wants to pay off the loan in 12 monthly installments otherwise the bank will come for his wife and children bom to them since they were pledged as collateral for the loan. What should the monthly repayments be if the annual interest rate is 18% (5 marks) (c) Assume that a house costs 150,000 and the borrower puts 25% deposit and borrows the difference from GCB Bank payable over 25 years. The mortgage rate is 12% a month. Required: a) Determine the monthly mortgage payments (5 Marks) b) Prepare an amortization schedule demonstrating the flow of transactions for the first five (5) months of the payment
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