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 o his debt

four years from now.

The amount of money that Jake will have to pay Martha four years from now isR45 181,81

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 [1] R21 171,35. [2] R22 286,88. [3] R25 103,93. [4] R32 500,00. [5] none of the above.