# 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

#### 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