CAIIB-RETAIL BANKING-LAST MINUTE REVISION-CASE STUDY : 7
Case Studies on EMI Mr. Naveen borrowed an amount of Rs. 50000 for 8 years @ 18% roi. What shall be monthly payment? Explanation : Here, P = 50000 R = 18% = 18 % ÷ 12 = 0.015 monthly T = 8 yrs = 96 months EMI = P * R * [(1+R)^T/(1+R)^T-1)] EMI = 50000 * 0.015 * 1.01596 ÷ (1.01596 – 1) = 986
A person raised a house loan of Rs. 10 lac @ 12% roi repayable in 10 years. Calculate EMI. Explanation : Here, P = 1000000 R = 12% monthly = 0.01% p.a. T = 10 Y = 120 months EMI = P * R * [(1+R)^T/(1+R)^T-1)] So, EMI = 1000000*0.01*(1+0.01)^120 ÷ {(1+0.01)^120 – 1} = 14347
If the sanctioned loan amount is Rs. 100000 at 12% interest for 2 years, Calculate the EMI. Solution : EMI= P x r x (1 + r)^n / ((1+r)^n -1) Here p = principal amount (loan taken) r = interest rate per month (ex: if interest rate per annum is 10% then 10/(12*100)) n= tenure in months EMI = 100000*0.01*(1+0.01)^24 /((1+0.01)^24 -1) = 4707 Where, p = loan taken = 1,00,000 r = interest rate per month = 1% = 0.01 n = tenure in months = 2 Years = 24 months
Ajit wants to receive Rs. 40000 p.a. for 20 years by investing @ 5%. How much he will have to invest now? Explanation : Here, P = 40000 R = 5% p.a. T = 20 yrs PV = P / R * [(1+R)^T - 1]/(1+R)^T PV = (40000 ÷ 0.05) * {(1.0520 – 1) ÷ 1.0520} = 498489