Time Value of Money

if annually instt paid then instt =140518.17

loan amt divided by cumulative discount factor from 1 to 25 year @ 8%

yes if monthly instt 

then instt will change 

loan amt divided by cumulative dis factoe from 1to 300 period @ 0.6667%

(assumed monthly intt =8/12)

Originally posted by : Souvik Kumar Ghosh
	What will be the answer to the following question: Mr.A borrows 15 lacs from a bank @ 8% interest p.a. to buy a house. He wants to repay this amount in 25 equal annual instalments for 25 years. Please calculate the amount of each annual instalment. Would your answer differ if the loan is taken under EMI scheme? Please show the whole computation.

hi everyone, 

annual inst will be wid int=138760

sum of pv disc rate for 25 yrs is 10.81

so 1500000/10.81= 138760.

but sweety have diff ans, may be due to wrong calculation, but concept is right.

@ Rakesh I think you have calculated CDF for 26 years

Please recheck