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Question 1 Mrs. Joyce Yamotele expects to retire in the next 17 years, and she contributes GHc4, 250 per year into her workplace Occupational Pension
Question 1 Mrs. Joyce Yamotele expects to retire in the next 17 years, and she contributes GHc4, 250 per year into her workplace Occupational Pension scheme at an interest rate of 17.5% per annum. i) Compute Mrs. Yamotele's future value of an annuity. (4 Marks) Mrs. Shy Sammy expects to earn GHc 32,530 in the next 8 years on a Sigadro bond she purchased at an interest rate of 7.5% in a quarterly basis over the period. ii) Calculate the present value of the investment. (3 Marks) iii) Compute the present value if interest rate changes to 15.7% per year over the same period. (3 Marks) iv) Interpret your answers in (i) and (ii). (2marks) v) What is the distinction between simple and compound interest? (4 Marks) vi) Discuss any four major roles finance managers perform in organisation. (4 Marks) (20 Total Marks)
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