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Madhu takes a loan of 50,000 from XYZ Bank, The rate of interest is 10% pr annum. The first installment will be paid at the end of year 5. Determine the amount (in) of equal installments. If Madhu wishes to repay the amount in five installments. A. € 19,510 B. 19,430 C. 19,310 D. 19,630?
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Madhu takes a loan of 50,000 from XYZ Bank, The rate of interest is 10...
Calculation of Equal Installments for Loan Repayment

Given:
Loan amount (P) = €50,000
Rate of interest (R) = 10% per annum
Time period (n) = 5 years
Number of installments (m) = 5

Formula:
The formula to calculate the equal installments for loan repayment is:
EMI = P * R * (1+R)^n / [(1+R)^n - 1]

where EMI = Equal Monthly Installment

Calculation:
Substituting the given values in the formula, we get:
EMI = 50,000 * 0.1 * (1+0.1)^5 / [(1+0.1)^5 - 1]
EMI = €12,834.72

Therefore, the amount of equal installments for loan repayment is €12,834.72.

Calculation of Total Amount Repaid

Given:
Loan amount (P) = €50,000
Rate of interest (R) = 10% per annum
Time period (n) = 5 years
Number of installments (m) = 5
Equal Monthly Installment (EMI) = €12,834.72

Formula:
The formula to calculate the total amount repaid is:
Total amount = EMI * m

where m = number of installments

Calculation:
Substituting the given values in the formula, we get:
Total amount = 12,834.72 * 5
Total amount = €64,173.60

Therefore, the total amount repaid by Madhu is €64,173.60.

Verification of Options

Now, we need to verify the given options to find the correct answer.

Option A: €19,510
Total amount repaid in 5 installments = 19,510 * 5 = €97,550
This is not equal to the total amount repaid by Madhu (€64,173.60).
Therefore, option A is incorrect.

Option B: €19,430
Total amount repaid in 5 installments = 19,430 * 5 = €97,150
This is not equal to the total amount repaid by Madhu (€64,173.60).
Therefore, option B is incorrect.

Option C: €19,310
Total amount repaid in 5 installments = 19,310 * 5 = €96,550
This is not equal to the total amount repaid by Madhu (€64,173.60).
Therefore, option C is incorrect.

Option D: €19,630
Total amount repaid in 5 installments = 19,630 * 5 = €98,150
This is not equal to the total amount repaid by Madhu (€64,173.60).
Therefore, option D is incorrect.

Conclusion:
None of the given options is correct. The correct answer is €12,834.72.
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Madhu takes a loan of 50,000 from XYZ Bank, The rate of interest is 10% pr annum. The first installment will be paid at the end of year 5. Determine the amount (in) of equal installments. If Madhu wishes to repay the amount in five installments. A. € 19,510 B. 19,430 C. 19,310 D. 19,630?
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Madhu takes a loan of 50,000 from XYZ Bank, The rate of interest is 10% pr annum. The first installment will be paid at the end of year 5. Determine the amount (in) of equal installments. If Madhu wishes to repay the amount in five installments. A. € 19,510 B. 19,430 C. 19,310 D. 19,630? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Madhu takes a loan of 50,000 from XYZ Bank, The rate of interest is 10% pr annum. The first installment will be paid at the end of year 5. Determine the amount (in) of equal installments. If Madhu wishes to repay the amount in five installments. A. € 19,510 B. 19,430 C. 19,310 D. 19,630? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Madhu takes a loan of 50,000 from XYZ Bank, The rate of interest is 10% pr annum. The first installment will be paid at the end of year 5. Determine the amount (in) of equal installments. If Madhu wishes to repay the amount in five installments. A. € 19,510 B. 19,430 C. 19,310 D. 19,630?.
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