A local pension scheme collects contributions from its members each year end. The planned collection for 2012 to 2016 as follows: year one K18,000,000 @ 8%;year two K12,000,000 @ 4%;year three K11,500,000 @ 2%, year four K14,500,000 @ 1.5% and year five K20,000,000 @ 0%.If the contributions were being invested at the indicated interest rates per annum up to the end of year 5. Calculate the future value of this investment. b.ZULU Mortgagors offers houses for sale on mortgage terms of 50% down payment of the property value and balance amortized over a four year period. Assuming you purchased a house valued at K450, 000,000 and paid the 50% down initial amount agreeing to pay the balance in four equal annual installments that include principle and 8.2% interest. Calculate the annual installment and draw the amortization schedule for this loan.
QUESTION TWO
a.A local pension scheme collects contributions from its members each year end. The planned collection for 2012 to 2016 as follows: year one K18,000,000 @ 8%;year two K12,000,000 @ 4%;year three K11,500,000 @ 2%, year four K14,500,000 @ 1.5% and year five K20,000,000 @ 0%.If the contributions were being invested at the indicated interest rates per annum up to the end of year 5. Calculate the
b.ZULU Mortgagors offers houses for sale on mortgage terms of 50% down payment of the property value and balance amortized over a four year period. Assuming you purchased a house valued at K450, 000,000 and paid the 50% down initial amount agreeing to pay the balance in four equal annual installments that include principle and 8.2% interest. Calculate the annual installment and draw the amortization schedule for this loan.
c.A student requires K24, 000,000 to clear an outstanding balance before graduating in four (4) years time. How much should he invest EACH YEAR END at 12% compounded annually for him to have the required amount to pay the school at the end of the two years?
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