Answer to Question #258953 in Finance for Imalka

Question

Nihal is borrowing Rs. 50,000 to buy ABC assets. If he pays equal installments for 25

years and 4% interest on the outstanding balance, what is the amount of installment?

What shall be the amount of installment if quarterly payments are required to be made?

Answer 1

Calculation:

If yearly payments are required to be made the amount of installment=Rs 3200.60

If quarterly payments are required to be made the amount of installment=Rs 793.29