QUESTION FIVE $[20$ Marks$]$

A senior public servant in Tanzania has secured a mortgage loan with MNB Bank plc to construct a house in Moshi. The servant secured the popular MNB Construction Mortgage loan, which is to be paid off in equal monthly instalments over a period of $15$ years. The loan amount is TZS $200$ Million, which charges an interest rate of $17\%$ p$.$a$.$ Required:

Advise the senior public servant the required amount for monthly mortgage payments.

QUESTION SIX $[20$ Marks$]$

$($a$)$ Umoja Unit Trust Scheme $($i$.$e$.$ Umoja Fund$)$ is one of the open$-$ended trust funds in Tanzania.

Required:

Explain to prospective Tanzanian investors what an "open$-$ended trust fund" is$.$

$[8$ Marks$]$

$($b$)$ A unit trust fund has a prospective average annual return of $8\%$ over the next $30$ years.

Required:

Estimate the value of a TZS $1\mathrm{.}4$ Billion investment after $30$ years when the returns are subject to an annual tax of $30\%$

$[12$ Marks$]$

$3$