Determine the amount of money that uncle Collin pays to the money lending institution monthly. How much does Uncle Collin pay to the government as tax? How much does Uncle Collin earn as his net income?

Here are the solutions 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 $45\%$ of the total investment of Shs 12,000,000.

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

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

$$$$