Tony owes Peter R 7000 due in twelve months' time from now. An interest rate of 10% per annum, compounded monthly is applicable.
Question 1: Tony decides to pay Peter 6 months from now. How much will he save by paying him earlier?
Question 2: Unfortunately Tony is unable to pay on the due date (hs), and pay Peter fifteen months from now. How much will he pay more if he pays later?
