- 6 Marks
QT – May 2018 – L1 – Q1b – Mathematics of Business Finance
Calculate the loan instalment for the purchase of machinery over five years with a 9% interest rate.
Question
The Managing Director of a small manufacturing company is considering buying a piece of machinery which costs GH¢15,000.
Required:
If the machine is to be purchased by taking a five-year loan at 9% per annum, which will be paid off in five equal annual instalments (starting a year after the loan is taken out), calculate the size of each instalment to the nearest whole number. (6 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Instalments, Loan amortization, Loan Calculation
- Level: Level 1
- Topic: Mathematics of Business Finance
- Series: MAY 2018