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A businessman obtained a loan of sh 450,000 from a bank to buy a matatu valued at the same amount.The bank charges interest at 24% per annum compounded quarterly.
(a)calculate total amount of money the businessman paid to clear the loan in 21/2years.
(b)The average income realized from the matatu per day was sh 150.The matatu worked for 3 years at an average of 280 days per year.Calculate the total income from the matatu.
(c)During the 3 years,the value of the matatu depreciated at the rate of 16% per annum.If the businessman sold the matatu at its new value ,calculate the total profit he realized by the end of 3 years.