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Economics

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here's the continuation for Item 5.

Item 5:

a) Determine the amount of money that Uncle Collin pays to the money lending institution monthly.

Step 1: Calculate Uncle Collin's savings.
Uncle Collin's savings are 45%45\% of the total investment of Shs 12,000,000.

Savings=0.45×12,000,000=5,400,000 Shs\text{Savings} = 0.45 \times 12,000,000 = 5,400,000 \text{ Shs}

Step 2: Calculate the loan amount needed.
The loan amount is the total investment minus his savings.

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