1. Wilberforce Obongita is a poultry farmer in Ikonjero-Kakamega County. He has been awarded the contract for the supply of chicken eggs to the Kakamega County Government for the next 5 years. Due to working capital challenges, he approached the Kakamega Co-op Bank branch manager Mr Fidelis Lijoodi to seek advice on the possibility of a bank loan. The bank has offered to give him a loan in order to bolster his working capital position.

The bank has offered to give him a loan of ksh 2,400,000 repayable in 4 years. The interest is compounded monthly.

Required:

Assuming the interest rate charged by the bank lies within the range of 11% pa to 17% pa and that the loan is given on a reducing balance terms, calculate the balance on the loan account that would remain unpaid at the end of 7^th, 9^th, 10^th and 13^th month of the 4-year life of the loan. (5 Marks)