Question
Mr Ondigo took a loan from ABC Bank amounting to Kah 2 400 000 to buy a piece of land in Nairobi. The bank
Mr Ondigo took a loan from ABC Bank amounting to Kah 2 400 000 to buy a piece of land in Nairobi. The bank charged interest of 15% p.a. compounded after every four months. (a) Giving your answers to the nearest Ksh 1 000, determine: The total interest to be repaid fully after 4 years. The amount owing after 3 years if Mr Ondigo made end yearly repayment of Kah 840 000 each. (4 marks) MI (b) The land appreciated at 10% p.a. Mr Ondigo su rough an agent who charged 8% commission on the sale value. If the land was sold at its fair value at the end of the fourth year, how much did Mr Ondigo receive from the agent?
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
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