Question
Pasomal limited borrowed GHc 120,000 at 28% to finance a new factory cooling system. The debt will be discharged at the end of 5 years
Pasomal limited borrowed GHc 120,000 at 28% to finance a new factory cooling system. The debt will be discharged at the end of 5 years with regular annual payment into a sinking fund that pays 20% interests per annum
i. Calculate the Annual Payment into the fund
ii. Construct a sinking fund schedule assuming that the payment into the fund is made at the end of the first year.
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There are 3 Steps involved in it
Step: 1
Part i Calculate the Annual Payment into the fund This involves calculating the annual sinking fund ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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Finite Mathematics and Its Applications
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair
12th edition
978-0134768588, 9780134437767, 134768582, 134437764, 978-0134768632
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