Answer to Question #329280 in Financial Math for Busi

Question

Abongile, the manager of a construction company is renovating a home and has expenses of R200 000,00

now and another R41 812,00 in six months’ time. As he finds it difficult to find the cash now, he proposes

to settle all the debt after six months with a single payment. The debt is subject to an interest rate of 9,5%

per annum, compounded quarterly. What is the value of the payment that will settle his debt at the end of

month six?