Pls solve this problem relating to Financial Management

Murali (Textile Designer) (66 Points)

09 July 2010

X obtained loan from a bank Rs 30,00,000 repayable in 15 annual instalments

Rate of interest 24% p.a. Compute the annual instalments

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Amir (Learner) (4016 Points)
Replied 10 July 2010

Dear Sir,

Principal = 30 Lakhs

Rate of Interes =24%pa

Period = 15 annual installments (assuming first installment is due at the end of year 1)

Year	Principal outstanding at begnning	Annual Installment	Interest Repaid	Principal Repaid
1	30,00,000.00	7,49,757.00	7,20,000.00	29,757.00
2	29,70,243.00	7,49,757.00	7,12,858.32	36,898.68
3	29,33,344.32	7,49,757.00	7,04,002.64	45,754.36
4	28,87,589.96	7,49,757.00	6,93,021.59	56,735.41
5	28,30,854.55	7,49,757.00	6,79,405.09	70,351.91
6	27,60,502.64	7,49,757.00	6,62,520.63	87,236.37
7	26,73,266.27	7,49,757.00	6,41,583.90	1,08,173.10
8	25,65,093.18	7,49,757.00	6,15,622.36	1,34,134.64
9	24,30,958.54	7,49,757.00	5,83,430.05	1,66,326.95
10	22,64,631.59	7,49,757.00	5,43,511.58	2,06,245.42
11	20,58,386.17	7,49,757.00	4,94,012.68	2,55,744.32
12	18,02,641.85	7,49,757.00	4,32,634.04	3,17,122.96
13	14,85,518.89	7,49,757.00	3,56,524.53	3,93,232.47
14	10,92,286.43	7,49,757.00	2,62,148.74	4,87,608.26
15	6,04,678.17	7,49,757.00	1,45,078.83	6,04,678.17
Total		1,12,46,355.00	82,46,355.00	30,00,000.00

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Amir (Learner) (4016 Points)
Replied 10 July 2010

If 1st installment is due at the beginning of year 1 then repayment schedule shall be as follows -

Year	Principal outstanding at begnning	Annual Installment	Interest Repaid	Principal Repaid
1	30,00,000.00	6,04,643.00	0	6,04,643.00
2	23,95,357.00	6,04,643.00	5,74,885.68	29,757.32
3	23,65,599.68	6,04,643.00	5,67,743.92	36,899.08
4	23,28,700.60	6,04,643.00	5,58,888.14	45,754.86
5	22,82,945.75	6,04,643.00	5,47,906.98	56,736.02
6	22,26,209.73	6,04,643.00	5,34,290.33	70,352.67
7	21,55,857.06	6,04,643.00	5,17,405.69	87,237.31
8	20,68,619.76	6,04,643.00	4,96,468.74	1,08,174.26
9	19,60,445.50	6,04,643.00	4,70,506.92	1,34,136.08
10	18,26,309.42	6,04,643.00	4,38,314.26	1,66,328.74
11	16,59,980.68	6,04,643.00	3,98,395.36	2,06,247.64
12	14,53,733.04	6,04,643.00	3,48,895.93	2,55,747.07
13	11,97,985.97	6,04,643.00	2,87,516.63	3,17,126.37
14	8,80,859.60	6,04,643.00	2,11,406.31	3,93,236.69
15	4,87,622.91	6,04,643.00	1,17,020.09	4,87,622.91
Total		90,69,645.00	60,69,645.00	30,00,000.00