Sixteen months from now, you must pay the bank R30 000. You decide to pay the bank earlier. If a simple interest rate of 11% per annum is applicable, then the amount that you must pay the bank ten months from now equals a. R27 480,92. b. R26 162,79. c. R28 436,02. d. R28 561,05.
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Step 1
- Future Value (FV) = R30,000 - Simple interest rate (r) = 11% per annum = 0.11 - Original time period = 16 months - New time period = 10 months Show more…
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