III.You buy a house for Rs50 lakh and immediately make cash payment of Rs 10 lakh. You finance the balance amount at 12 percent for 20 years with equal annual installments. How much are the annual installments? How much of the each payment goes towards reducing the principal?

III.You buy a house for Rs50 lakh and immediately make cash payment of Rs 10 lakh. You finance the balance amount at 12 percent for 20 years with equal annual installments. How much are the annual installments? How much of the each payment goes towards reducing the principal?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

100%

III.You buy a house for Rs50 lakh and immediately make cash payment of Rs 10 lakh. You
finance the balance amount at 12 percent for 20 years with equal annual installments. How
much are the annual installments? How much of the each payment goes towards reducing the
principal?
IV. An account earning 6.6% interest compounded continuously for 10 years would have a
balance of how much if the principal was Rs 5500.
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