Miss Aina is a Financial Director of a listed company. Aina plans to retire at the age of

55 (in 30 years’ time) and will require a monthly income of N$20 000 for 10 years after retirement date. If the return she can obtain is 12% per annum with interest

compounded monthly, how much should Aina contribute every month for the next 30

years in order to obtain an annuity of N$20 000 per month for 10 years after the

retirement date?

b), Suppose Denver borrows N$70,000 at 12 % interest towards the purchase of a home and his mortgage is for 10 years.

i) How much will his annual payment be? (3 marks)

ii) Show the amount of loan balance outstanding at the end of each year up to

year 8