Ahmed is supposed to pay RO 5,000, RO 10,000 and RO 15,000 at the end of year 1, 2 & 3 respectively. If he wants to settle such amount today by paying lumpsum then what amount will he have to pay now the current interest rate prevailing in the market is 6% compound interest?

Answer rating: 100% (QA)

To find out the lump sum amount Ahmed needs to pay today to settle the future payments you can use t... View the full answer