Souvik Kumar Ghosh (CA Final) (1368 Points)
14 May 2011What will be the answer to the following question:
Mr.A borrows 15 lacs from a bank @ 8% interest p.a. to buy a house. He wants to repay this amount in 25 equal annual instalments for 25 years. Please calculate the amount of each annual instalment. Would your answer differ if the loan is taken under EMI scheme? Please show the whole computation.
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 14 May 2011
| Originally posted by : sweety | ||
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if annually instt paid then instt =140518.17 loan amt divided by cumulative discount factor from 1 to 25 year @ 8% yes if monthly instt then instt will change loan amt divided by cumulative dis factoe from 1to 300 period @ 0.6667% (assumed monthly intt =8/12) |
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CA Rakesh Garg
(Asst. MGR Taxation)
(510 Points)
Replied 16 May 2011
| Originally posted by : Souvik Kumar Ghosh | ||
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What will be the answer to the following question: Mr.A borrows 15 lacs from a bank @ 8% interest p.a. to buy a house. He wants to repay this amount in 25 equal annual instalments for 25 years. Please calculate the amount of each annual instalment. Would your answer differ if the loan is taken under EMI scheme? Please show the whole computation. |
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sum of pv disc rate for 25 yrs is 10.81
so 1500000/10.81= 138760.
but sweety have diff ans, may be due to wrong calculation, but concept is right.
CAclubindia
