You have decided to rent your flat in Laudium to tenants for 5 years while you will be working as training accountant at a firm in Polokwane. In total you will receive five payments from the tenants. R100 000 now and R100 000 at the beginning of year 2, 3, 4 and year 5. You are required to calculate the present value of the annuity due by using 10% as the discount rate. [Set your calculator on four decimals for calculations and round the final answer to the nearest rand.

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To calculate the present value of the annuity due we can use ... View the full answer