Question:Q1. Assume that it is now January 1 20X4 and you will need
GHC10,000 on January...
Question
Q1. Assume that it is now January 1 20X4 and you will need
GHC10,000 on January...
Q1. Assume that it is now January 1 20X4 and you will need
GHC10,000 on January 1 20X8, your bank compounds interest at an 8
percent annual rate.
I. How much must you deposit on January 1, 20X5, to have a
balance of GH¢ 10,000 on January 1, 20X8? 3 marks
II. If you want to make an equal payments on each January 1
from 20X5 through 20X8 to accumulate the GH¢10,000, how large must
each of the four payments be? 3 marks
III. If your uncle were to offer either to make the payments
calculated in (II) or to give you a lump sum of GH¢7,500 on January
1 20X5, which would you choose? 3 marks