
A bank’s discount rate is 12%. You need to pay the bank R5 000 in six months’ time. The amount of money that you will receive now from the bank is

To determine how much money you will receive now from the bank, given the discount rate and the future value, we can use the formula for calculating the present value using a bank discount rate:

\[
\text{Present Value} = \text{Future Value} \times \left(1 - \text{Discount Rate} \times \frac{\text{Time}}{12}\right)
\]

Here:
- The **Future Value** (FV) is R5,000.
- The **Discount Rate** (r) is 12%, or 0.12 as a decimal.
- The **Time** (t) is 6 months.

Substituting the values into the formula:

\[
\text{Present Value} = 5000 \times \left(1 - 0.12 \times \frac{6}{12}\right)
\]

Let's calculate it:

\[
\text{Present Value} = 5000 \times \left(1 - 0.12 \times 0.5\right)
\]
\[
\text{Present Value} = 5000 \times \left(1 - 0.06\right)
\]
\[
\text{Present Value} = 5000 \times 0.94 = 4700
\]

So, the amount of money that you will receive now from the bank is **R4,700**.

Would you like more details on this calculation or have any other questions?

### Related Questions:
1. What is the formula for calculating present value using different discount rates?
2. How would the present value change if the discount rate were higher?
3. What happens to the present value if the payment time is longer than six months?
4. How do banks determine the discount rate?
5. Can the present value ever exceed the future value?
6. What is the difference between simple interest and a discount rate?
7. How does the discount rate affect loan payments?
8. How would this calculation differ if interest were compounded?

**Tip:** Always remember to express the discount rate as a decimal when substituting it into formulas.

Learn how to calculate the present value using a bank's discount rate. Detailed step-by-step explanation with an example involving a 12% discount rate and a payment of R5,000 in six months' time.

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