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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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Part i Calculate the Annual Payment into the fund This involves calculating the annual sinking fund ... blur-text-image

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