) 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 1734% per annum. 6) 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.
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 1734% per annum.
6) 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.
Step by step
Solved in 4 steps with 6 images
