A large face$-$shovel is bought new for a price of GH&$23,250.$ It has an expected life of seven

years when it is expected to have no salvage or resale value. Expenditure on maintenance,

insurance, taxation, fuel and lubricants is expected to reach GHc$500$ by the end of the first

year, GHc $700$ by the second, GHc$900$ by the end of the third and so on increasing by GHc$200$each year.

What is the Present value of owning this piece of equipment if interest is at $5\%?$

Owing to a slack in the economy, Omega Construction Limited temporarily folded up for four

years. Throughout this period, repair and maintenance work was carried out on their equipment

and this cost GHe$15,000$ per annum. Calculate the accumulated sum involved at the end of the

four$-$year period, assuming a compound interest rate of $8\%$

What amount must Mr$.$ Ibrahim invest now to cover the cost of redecorating their small

shopping centre with a $40-$year life at five yearly intervals at a cost of GHc $10,000$ if the interest

rate is $8\%?$

What would be the amount to be invested annually for the work in $(12)$ above?

A contractor borrows an amount of $GH$$$200,000$ to purchase an equipment. The loan is to be

repaid in $30$ years by equal, annual, year$-$end payments. With the interest of $8\%$ how much

should the contractor pay yearly.

A lecturer owns a building on which there is a mortgage of $GHc100,000.$ The mortgage is to

be retired in $30$ years by equal, annual, year$-$end payments. With interest at $4\%,$ how much of

the mortgage would be paid off at the end of $20$ years?

Assume a person invests $GhC1000$ in the first year, GhC $1500$ in the second year, GhC $1800$

in the third year, GhC $1200$ in the fourth year and $2000$ in the fifth year. At an interest rate of

$8\%$

a$.$ Calculate the time zero lump sum

b$.$ Calculate the end of year five lump sum settlement that is equivalent to receiving the

end of period payment

c$.$ Calculate five uniform series of equal payment that is equivalent to the above starting

from year one that is equivalent to the above values