Question

Three years ago Jake borrowed R7 500 from Martha. The condition was that he would pay her back in seven years’ time at an interest rate of 11,21% per year, compounded semi-annually. Six months ago he also borrowed R25 000 from Martha at 9,45% per year, compounded monthly. Jake would like to pay off his debt four years from now. (a). The amount of money that Jake will have to pay Martha four years from now is (b). After seeing what he must pay Martha, Jake decides to reschedule his debt as two equal payments: one payment now and one three years from now. Martha agrees on condition that the new agreement, that will run from now, will be subjected to 10,67% interest, compounded quarterly. The amount that Jake will pay Martha three years from now is

Answer 1

sel Eo T toan presunt aount RISo0 u=21 p year year PV si121 peiod 2 semi anmually umhu N nt EvE Vx(lt)Y 2(+) 14 Ciossos 1500 (2-14516184). 15o0 17 16093 26 16093. 25&& 17 Rls0126 Loam R25000 PV 0.0945 S4 mmthLEnt 6 monthe 12 mt Ev- PV S4 1 0-0145 12- 2500 0 34 25nnnLt 0n01875 25000(001815)

EV 2500o (52142654) 38105. 66る5 R 30105.66. EV R1609B26 t R3a1es66 Telas paument R54210 92 17