Frieda will discharge a debt of R500 000 six years from now, using the sinking fund method. The interest of the debt is 15.6% per year, paid quarterly. The sinking fund earns interest at a rate of 8.4% per year, compounded monthly.   The total yearly cost to discharge the debt (to the nearest rand) is [1] R142 375. [2] R42 000. [3] R78 000. [4] R93 834. [5] R128 833.

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