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A man purchased a house valued at Rs. 300000.He paid Rs. 200000 at the time of purchase and agreed to pay the balance with interest at 12% per annum compounded half yearly in 20 equal halfyearly instalments .If the first instalment is paid after six months from the date of purchase then the amount of each installment is?
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Calculation of Installment Amount

The man purchased a house valued at Rs. 300000 and made a down payment of Rs. 200000. He agreed to pay the balance with interest at 12% per annum compounded half yearly in 20 equal half-yearly installments. The first installment is paid after six months from the date of purchase. We need to calculate the amount of each installment.


Calculation of Total Amount Payable

Let's first calculate the total amount payable by the man.

Principal amount (P) = Rs. 100000 (Rs. 300000 - Rs. 200000)

Rate of interest (r) = 12% per annum

Time period (t) = 20 half years

Interest rate per half year (i) = 6% (12%/2)

Number of compounding periods (n) = 40 (20 x 2)

Using the formula for compound interest, we can calculate the total amount payable (A) as:

A = P(1 + i)^n

A = Rs. 100000(1 + 0.06)^40

A = Rs. 362237.64


Calculation of Installment Amount

Now, we can calculate the installment amount using the formula for present value of an annuity.

Present value of annuity (PV) = A[(1 - (1 + i)^-n)/i]

PV = Rs. 362237.64[(1 - (1 + 0.06)^-40)/0.06]

PV = Rs. 362237.64[14.877]

PV = Rs. 5395376.34

Each installment amount can be calculated by dividing the present value of annuity by the number of installments.

Installment amount = PV/20

Installment amount = Rs. 269768.82


Conclusion

Therefore, the amount of each installment is Rs. 269768.82.
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A man purchased a house valued at Rs. 300000.He paid Rs. 200000 at the time of purchase and agreed to pay the balance with interest at 12% per annum compounded half yearly in 20 equal halfyearly instalments .If the first instalment is paid after six months from the date of purchase then the amount of each installment is?
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A man purchased a house valued at Rs. 300000.He paid Rs. 200000 at the time of purchase and agreed to pay the balance with interest at 12% per annum compounded half yearly in 20 equal halfyearly instalments .If the first instalment is paid after six months from the date of purchase then the amount of each installment is? 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 A man purchased a house valued at Rs. 300000.He paid Rs. 200000 at the time of purchase and agreed to pay the balance with interest at 12% per annum compounded half yearly in 20 equal halfyearly instalments .If the first instalment is paid after six months from the date of purchase then the amount of each installment is? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A man purchased a house valued at Rs. 300000.He paid Rs. 200000 at the time of purchase and agreed to pay the balance with interest at 12% per annum compounded half yearly in 20 equal halfyearly instalments .If the first instalment is paid after six months from the date of purchase then the amount of each installment is?.
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