Numerical - Time value of money - Annual installments on loan

Q.  Mr. X takes a loan of Rs 50,000 from HDFC Bank. The rate of interest is 10% per annum. The first installment will be paid at the end of year 5. Determine the amount of equal annual installments if Mr. X wishes to repay the amount in five installments.
- Published on 04 Sep 15

a. Rs 19500
b. Rs 19400
c. Rs 19310
d. None of the above

ANSWER: Rs 19310

Related Content

 

    Discussion

  • ZEGEYE GEBREMEDHIN CHOLLE   -Posted on 20 Sep 21
    pls give / show formula
  • PRASHANT KUMAR SHRIVASTAV   -Posted on 30 May 20
    PV= -50000
    At the end of five year means paying emi in the fifth year after 4 year
    n=4
    I/Y=10%
    FV=?
    Total accumulated Amount i. e FV=73205 installment start time then we can say PV= -73205
    n=5
    I/Y=10%
    PMT=?
    ANS
    ans=19311
  • Monika    -Posted on 07 Feb 19
    Solve this question
  • Monika    -Posted on 07 Feb 19
    Solve this question
  • Monika   -Posted on 06 Feb 19
    Plzz explain this question
  • Sandeep Nair   -Posted on 29 Oct 18
    From the formula for Present Value of Deferred Annuity we derive:
    A=V*r/{ [1/(1+r)^m] - [1/(1+r)^(m+n)] }
    Present Value V = 50000
    Rate of Interest r = 0.1
    deferred for 'm' terms m = 4
    deferred annuity of 'n' terms n = 9
    From above formula
    Installment A = 19310.98
  • Puneet Kumar   -Posted on 23 Sep 17
    Pls explain
  • Prabin   -Posted on 21 Aug 17
    Need to know the process the this question calculation.
  • Gurubrahmam   -Posted on 15 Dec 16
    Please up load the first problem Expiation.
  • maria   -Posted on 07 Jul 16
    good

➨ Post your comment / Share knowledge


Enter the code shown above:

(Note: If you cannot read the numbers in the above image, reload the page to generate a new one.)
▲