Abongile, the manager of a construction company, is renovating a home and has expenses of R200 000,00 now and another R41 812,00 in six months' time. As he finds it difficult to find the cash now, he proposes to settle all the debt after six months with a single payment. The debt is subject to an interest rate of 9,5% per annum, compounded quarterly. What is the value of the payment that will settle his debt at the end of month six? Select one: a. R244 173,06 b. R251 096,50 c. R243 821,65 d. R251 424,81
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5% per annum, compounded quarterly. The formula for future value is: FV = PV * (1 + r/n)^(nt) Where: - PV is the present value (R200 000,00) - r is the annual interest rate (9.5% or 0.095) - n is the number of times that interest is compounded per year Show more…
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