Siyabonga R5 000 which must be paid in three months' time and R2 000 which must be paid in six months' time. Kagiso offers to pay R3 000 immediately if he can pay the balance in one years' time. Siyabonga agrees to this arrangement, on condition that they use a simple interest rate of 10% per annum. They also agree that for settlement purposes the R3 000 paid now will also be subject to interest at a simple rate of 10% per annum 

REQUIRED:

Calculate how much Kagiso will have to pay Siyabonga at the end of the year.

Answer rating: 100% (QA)

Kagiso will have to pay R5 490 at th... View the full answer