A printing press is considering borrowing GHS35, 000 to purchase a new generator set. This move is to argument power supply as the current power crisis is having a serious negative effect, on the company’s production and revenue base. Its bankers are prepared to give out the loan at 28%, it is expected that this debt would be paid off in 5 years with periodic annual payment into a sinking fund that pays 15% interest per annum.
a. Calculate the annual payment into the sinking fund.
b. Prepare a sinking fund schedule, assuming that payment is made at the end of the year.
Please the submission of this assignment is due by 24th April 2016
Thank you