Answer to Question #327501 in Financial Math for tumi

Question

Prince wants to open a Hair Salon and asks his uncle Lerumo if he will lend him the money. He also indicates that he will only be able to start paying him back after five years, at which time he will then pay R35 000 at the end of every four months, for four years. Uncle Lerumo agrees, on condition that his money must earn 12,2% interest per year, compounded every four months.

The present value of Prince's debt when he starts paying back uncle Lerumo after 5 years will be