Answer to Question #294315 in Accounting for Khanyi

Question

the amount of money you will receive from the bank now, if the bank approved the loan with redemption of r30 000 due 8 months from now with an applicable amount with sample discount rate of 16.5 per year is?

Answer 1

$PV=\frac{FV}{(1+i)^n}$

n=8

$i=\frac{0.16}{12}=0.0133$

$PV=\frac{30000}{(1+0.0133)^8}=26990.87$