Question
3 Years ago Jake borrowed R7500 from Martha. The condition was that he would pay her back im 7 years' time at an interest rate
3 Years ago Jake borrowed R7500 from Martha. The condition was that he would pay her back im 7 years' time at an interest rate of 11.21% per year, compounded semi aunally. 6 Months ago he also borrowed R25000 from Martha at 9.45% per yar compounded monthly. Jake would like to pay off his debt in 4 years from now
(a) what is the amount that Jake will have to pay Martha 4 years from now?
(b) after seeing shat he must pay Martha, Jake decides to reschedule his debtas 2 equal payments: one mou and one 3 years from now. Martha agrees on condition that the new agreement that will run from now will be subjected to 10.67% interest, compounded quaterly. What is the amount Jake will pay Matha 3 years from now?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started