A debt of R7 132,00 is due in five years time. The creditor gives permission to discharge the debt by receiving a payment of
R2 714,00 immediately and a final payment of RX in seven
years' time. The interest rate charged on all amounts is 9% per
year, compounded monthly. You can indicate the amounts on the
following time line to assist you in visualizing the problem:
1
6
Mears
Interest is compounded monthly
The payment, to the nearest rand, which should be made at the end
of the seventh year in order to liquidate the debt, is