Menu
Sfm query. urgent
plz tell me the difference between calculate equal annual instalments and calculate equated annual instalments.
Replies (3)
equated is including interest and equal is only principal
Equal annual installments :
If loan amount is 500000 and you have to repay it in 5 equal annual installments then each installment will be 100000
Equated annual installments :
Loan = 500000 term= 6 yrs rate = 15%
Installment = 500000/PVAF(15%,6)
But you should keep it in mind that if the question says repay the PRINCIPAL in 5 equal annual installments then you need to divide the loan amount by 5. But if it only says repay the LOAN in 5 equal/equated installments then use the PVAF formula.
Recent Threads
- Query on Buy Back of shares
- Best Ca Inter coaching in Laxmi Nagar
- Why do so many SMEs struggle to scale?
- ITR Processing Delay 2025 - Common Reasons & Pr
- Heard & Seen Around – Your Daily Economi
- First time itr4 filing
- Notice of not filing GSTR 10 after 7years
- Turnover not shown in GTSR -3B want to add and pay
- Suggestion needed for CA Inter Costing for Jan 26
- Heard & Seen Around – Your Daily Economi
Related Threads
CAclubindia
