Answer to Question #316214 in Financial Math for Cherry

Question

Daniel asks to reschedule the ompensation in three payments, the first payment now, the second payment twice the size of the first payment four years from now, and the third payment three times the size of the first payment nine years from now. The Boxing Fund agrees on condition that the interest rate hanges to 10,95% per year, compounded monthly. The amount to the nearest hundred rand that Daniel an expect to receive four years from now is

1. R864 000.

2. R557 510.

3. R184 800.

4. R369 600.