Question 1 You are the finance partner of PapTMako Inc, a construction firm. Your firm needs additional funds to finance a planned expansion program…

Question 1

You are the finance partner of PapTMako Inc, a construction firm. Your firm needs additional funds to finance a planned expansion program to be implemented in 5 years time. You are considering setting up a sinking fund to raise GH¢200000 in five years. You were able to negotiate for an interest rate of 20% per annum. Equal amount of payments the sinking fund to be made at the end of each of the next five (5) years.


Determine the equal amount of payments to be made at the end of each year.

Question 2

Yahya needs at least GH¢3000 in 5 to start a small business. He is considering saving from now to get the required minimum start-up capital. He has the following two savings options:

Option 1

He can deposit an amount of GH¢1500 in a time deposit account for 5 years. This account attracts interest of 20% per annum. Interest is compounded semi-annually.

Option 2

He can deposit GH¢350 into a sinking fund at the end of each year for 5 years. The fund attracts compound interest at 25% per annum.


(a)  Find the future value of all the payments under each of the two options.             

(b)  Which of the options would help him to obtain the maximum amount to start the business?          

(c)  How much should he contribute at the end of each year for the next five years so as to earn at least GH¢3000 from the sinking fund under Option 2?

Show more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10