3) An investor bought a plot of land at the cost of ¢1,500,000 in 1998. He immediately executed site works at a cost of ¢450,000. He has now decided to sell the property and considers it to be an 8% venture. Advice on the minimum selling price of the property. 4) Mr Fancyman has consulted you as a broker. According to him, he wants to invest in a pension fund and has ¢1,500,000 to invest. If the return on capital is 20% per annum, advise Mr. Fancyman on the income to be earned annually for 4 years if he ultimately buys the investment. 5) Mr. Afriyie recently purchased a dilapidated property in the CBD for ¢8 million. He plans to refurbish the property into a first class shopping centre and it is estimated that he has to spend ¢500,000 per month on the project for the next 5 years when the project will be completed. Calculate the true cost of the project at the time of completion if he expects returns on his capital at 17 % per annum ) The Accra Metropolitan Assembly is planning the construction of a district central market at Achimota. It is estimated that the proposed market could produce an annual income of ¢5,000,000 for the first 25 years. Mr Antwi has been approached to finance the project on condition that he will be given the right to recoup his capital over 25 years before the Assembly takes over. Advise Mr. Antwi on the capital to be invested in the project if he can earn returns on his capital at 12% compound interest per annum. 7) Irmgard borrowed ¢7 million from her friend at a rate of 21% converted monthly 2 years ago. If no interest has been paid, how much will be needed to pay off the loan in three years’ time? please the solutions questions 3,4 , 5,6 and 7
3) An investor bought a plot of land at the cost of ¢1,500,000 in 1998. He immediately executed site works at a cost of ¢450,000. He has now decided to sell the property and considers it to be an 8% venture. Advice on the minimum selling price of the property.
4) Mr Fancyman has consulted you as a broker. According to him, he wants to invest in a pension fund and has ¢1,500,000 to invest. If the return on capital is 20% per annum, advise Mr. Fancyman on the income to be earned annually for 4 years if he ultimately buys the investment.
5) Mr. Afriyie recently purchased a dilapidated property in the CBD for ¢8 million. He plans to refurbish the property into a first class shopping centre and it is estimated that he has to spend ¢500,000 per month on the project for the next 5 years when the project will be completed. Calculate the true cost of the project at the time of completion if he expects returns on his capital at 17 % per annum
) The Accra Metropolitan Assembly is planning the construction of a district central market at Achimota. It is estimated that the proposed market could produce an annual income of ¢5,000,000 for the first 25 years. Mr Antwi has been approached to finance the project on condition that he will be given the right to recoup his capital over 25 years before the Assembly takes over. Advise Mr. Antwi on the capital to be invested in the project if he can earn returns on his capital at 12%
7) Irmgard borrowed ¢7 million from her friend at a rate of 21% converted monthly 2 years ago. If no interest has been paid, how much will be needed to pay off the loan in three years’ time?
please the solutions questions 3,4 , 5,6 and 7
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