Question

The development budget of a municipality in Ghana includes expenditure on Feeder Roads, Schools and Water supply. The expenditure on roads, schools and water supply

are in the ratio 7:15:2. If the expenditure on roads is GH¢28,000,000.00, Find the expenditure on;

(i) Schools

(ii) Water supply

(iii) What is the total budget for these three projects.

(b)The cost of maintaining the municipality libraries is GH¢900,000.00 and this is met from the expenditure on schools. What percentage correct to three significant figures, of the expenditure on schools is spent on maintaining libraries.

C. After making a down payment of GH¢4000 for an automobile, the municipality paid GH¢400 per month for 36 months with interest charged at 12% per year compounded

monthly on the unpaid balance.

(i) What was the original cost of the car?

(ii) What portion of the Municipality’s total car payments went toward interest

charges?

Answer 1

Let the expenditure on roads, schools and water supply be 7x, 15x,2x respectively.

Expenditure on roads $=7x=28,000,000$

$x=\frac{28,000,000}{4}=4,000,000$

So the expenditure on

(i)schools$=15x=15\times4,000,000$

$=GH¢ 60,000,000$

(ii) water supply$=2x=2\times 4,000,000$

$=GH¢ 8,000,000$

(iii)total expenditure

$=28,000,000+60,000,000+8,000,000=GH¢ 96,000,000$

(b)

Cost of maintaining libraries$=GH¢900,000$

$900,000=x\%of60,000,000$

$\frac{x}{100}\times 60,000,000=900,000$

$x=\frac{900,000 \times 100}{60,000,000}=1.50\%$

(c)

Given

using the excel PV function

(i) Original cost of the car = 16,043

(ii) Portion paid towards interest=2357

Formulas: