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Question 3(20 Marks) Onaapo Limited is borrowing GH200,000 today. The loan will come at an annual interest rate of 20% for a period of 10
Question 3(20 Marks) Onaapo Limited is borrowing GH200,000 today. The loan will come at an annual interest rate of 20% for a period of 10 years. Prepare an amortization schedule for the loan indicating how much Onaapo Limited must pay at the end of each year to retire the loan at the end of the 10 year period. (Show all relevant calculation) SOME USEFUL FORMULAS WACCY =(Wd(Rd[1T]))+(WeRe) Profitability Index =1+( NPV/ICO) IRR=a+NPVaNPVbNPVa(ba) Present Value (Ordinary Annuity) =R(r1[(1+i)n) Future Value (Ordinary Annuity) =R(r(1+i)n1) Simple Interest =Pin Future Value (FV)=P(1+i)n Re=Rf+(RmRf)Ve=kgD0(1+g)
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