1. State three (3) factors Financial Managers take into consideration when setting the timing to raise funds. (2 Marks)

2. List four(4) main functions of Financial managers (2 Marks)

3. Franklin Roosevelt borrowed GH 30,000 from Persus Bank at an interest rate of 15% and agreed to pay equal installments over five years.

You are required to

1. Determine the size of the payments

(3 Marks)

2. Set up an amortization schedule for the loan (5 Marks)
3. What is the total interest to be paid after five years (2 Marks)

d) Bill deposited $ 4,000 at a bank, which gives interest rate of 10%. How much will he have in three years if interest rate is paid ?

i) Semi- annually (2 Marks)

ii) Quarterly ( 2 Marks)

iii) James Benson borrowed GH15,000 from a bank for four years. If interest rate charged by the bank is 20%, how much will be paid by James at the end of the period if it is compounded continuously? (2 Marks)

Vi) What is the effective interest rate if you deposit $100 at a bank today and earn interest at the rate of 10% compounded quarterly? (4 marks)

[ 24 Marks]