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Fundamentals of Financial Management, Third Edition by Vyuptakesh Sharan

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SOLVED NUMERICAL PROBLEMS
  1. A person borrows Rs 10,000 for 4 years at 10% interest rate. Find the annual equal instalments that he has to pay.

    Solution

    Since present value interest factor from an annuity corresponding to 10% and 4 years,

    PVIFA 10%, 4 years = 3.1699

    Annual instalment = Rs 10,000/3.1699 = Rs 3,154.67

    Instalment payment schedule

     

  2. A person borrows Rs 10,000 for 4 years at 10% interest rate. Find the size of total instalments when principal is repaid in equal instalment annually.

    Solution

    Repayment Schedule

     

  3. A person borrows Rs ...

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