Question
A debt of R7000 is to be paid off by a payment of R2000 now, and two equal payments two consecutive years from the second
A debt of R7000 is to be paid off by a payment of R2000 now, and two equal payments two consecutive years from the second year. If the interest rate is 6% compounded semi-annually, how much is each of the two payments? [3] 4.2 Martha wishes to invest the sum of R30000. The bank she approached with her business idea gave her 3 investment options to choose from. Option A: To invest the money in a business that pays an interest of 5% compounded quarterly. Option B: To invest in a business that pays an interest of 4% compounded monthly. Option C: To invest in a business that pays an interest of 4.5% compounded continuously. Which option should Martha choose?
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