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)

Maame TorTor has just purchased a GH¢70,000.00 house and made a down Payment of GH¢15,000.00.
Required:
i) Determine how much money is needed to amortize (.i.e. pay monthly) the balance at 9% interest rate compounded annually for 25 years.                                                                                                                                                                         (5 marks)

ii) Determine the total interest for the 25 years.                                                                                                                  (2 marks)

iii) Determine after 5 years the equity she has in the house.                                                                                             (3 marks)

A loan of GH¢3,000 at an effective annual interest rate of i = 2% is amortized by means of 12 annual payments, beginning a year after the loan is taken.
Hint: The schedule should have the following columns: Payment, Interest Due, Principal Repaid and Outstanding Balance.
Required:
Construct an amortization schedule.