Answer to Question #189546 in Financial Math for ntombi mshango

Question

Patric borrows money from Zanele at a simple discount rate of 9,75% per annum. He must pay him R35 000 in 27 months’ time. The amount of money that he receives from Zanele now is

[1] R27 321,88.

[2] R44 835,87.

[3] R28 389,51

[4] R42 678,13.

[5] R28 703,23

Answer 1

The correct option is 5.

Hence, the amount of money that he receives from Zanele now is R 28,703.23.