Answer to Question #305778 in Financial Math for Ndi

Question

6 years ago on Olwethu lent happy 150,000 on condition that you will pay her back in 9 years time. The applicable interest rate is 15.5% per year compounded mothly.Happy also owes Olwethu another amount of 250,000 that he has to pay back six years from now for a loan that earned interest at 16.4% per year compounded semi-annually.happy asks Olwethu if he can settle both his debts three years from now.The total amount that happy will have to pay all way to 3 years from now is

Answer 1

​A=P(1+r/n)^nt

^{A-final amount}

^{P-initial principal}

^{r-rate of interest}

n-number of times interest is compounded per time period

t- number of periods

1st interest:

=150000(1+0.155)^12×3

150000(1.155)³⁶

179.