Question
a supplier supplied a customer with goods valued at GHS50000 on 1st Januar,2020 on credit terms.the buying organization sets the annual rate charged for borrowing
a supplier supplied a customer with goods valued at GHS50000 on 1st Januar,2020 on credit terms.the buying organization sets the annual rate charged for borrowing by the supplier (the annualized percentage rate-APR) at 20% compounded monthly and the supplier wants to be paid 30 days earlier (30 days acceleration of payments) than the original net due date.However,in order for supplier to raise capital to run the business,he has agreed to be paid by the customer's bankers while the customer in turn pays the bank on the due date.to repay the bank on october 31 2020,the customer has decided to set aside equal sums of money and invest in a fund which earns 24% per annum rate of interest compounded monthly in advance. a)what is the incremental discount charged by the bank? b)how much will the buyer pay the bank on june 30.2020? c)determine the equal instalments the customer has to make into the fund d)prepare a sinking fund schedule e)what will be the equal installments when the buyer makes payment in arrears f)construct a sinking fund schedule
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