Question

Determine the present value of a loan if R12 000 is due in ve years' time, at a simple dis

ount rate of 15%

per annum.

[1℄ R12 656,25

[2℄ R12 972,97

[3℄ R13 125,00

[4℄ R13 664,28

Answer 1

$PV=\frac{12000}{(1+0,15\times5)}=6857.14$