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Dmitriy789 [7]
2 years ago
12

Sindi borrowed an amount of money from his father to open the Salon. The loan will be paid back by means of payments of R25 000

each, every second month for six years. An interest rate of 7,5% per year, compounded every two months, will be applicable. The present value of the loan is
Mathematics
1 answer:
amm18122 years ago
5 0

The present value of the loan will be = R36,250

<h3>Calculation of the present value</h3>

The principal capital (P) = R25 000

Interest rate for the payment (R)= 7.5%

Time for the payment (T)= 6 years

Therefore simple interest = P×T×R/100

= 25,000×6×7.5/100

= 250×6×7.5

= R11,250

The present value of the loan will be;

= 25,000 + 11,250

= R36,250

Learn more about simple interest here:

brainly.com/question/20690803

#SPJ1

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