Question: Jay intends to open a small material shop and borrows the money for it from his Uncle Jossop. Jay feels that he will only be

Jay intends to open a small material shop and borrows the money for it from his Uncle Jossop. Jay feels that he will only be able to start repaying his debt after 3 years. Jay will then pay Jossop R105 000 per year for 5 years. Money is worth 19.5% per year. (a) What is the present value of Jay's debt at the time he will start paying Uncle Jossop back? (b) What is the amount that uncle Jossop originally lent Jay?

Please show calculations.

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