Mthethwa contracted the following loans from Mdletshe: a) On June 1, 1947, he borrowed R3000 which...
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Mthethwa contracted the following loans from Mdletshe: a) On June 1, 1947, he borrowed R3000 which was to be repaid in 5 years with accumulated interest at 5% p.a. compounded semi -annually. interest bearing note for b) On June 1, 1949, he signed a non- R5000 due 6 years thereafter. Mthethwa filed to meet the first obligation and on a meeting with Mdletshe they agreed that both debts should be liquidated by a payment of R4000 on June 1, 1954, and a final payment on 1 June 1958. What should the final payment be if the agreed rate of interest in the settlement is 4% effective? Mthethwa contracted the following loans from Mdletshe: a) On June 1, 1947, he borrowed R3000 which was to be repaid in 5 years with accumulated interest at 5% p.a. compounded semi -annually. interest bearing note for b) On June 1, 1949, he signed a non- R5000 due 6 years thereafter. Mthethwa filed to meet the first obligation and on a meeting with Mdletshe they agreed that both debts should be liquidated by a payment of R4000 on June 1, 1954, and a final payment on 1 June 1958. What should the final payment be if the agreed rate of interest in the settlement is 4% effective?
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To calculate the final payment we need to find the present value of the agreed settlement amoun... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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