Pradeep has bought a house worth Rs. 50,00,000. He has decided to put 10 lakhs of his own savings and borrowed Rs. 40,00,000 at a rate of 10% APR. The loan was to be repaid in Equated Monthly Instalments (EMIs) over a period of 15 years. The EMIs are to be paid in the beginning of each month. Prepare a loan amortization schedule. on excel

Pradeep has bought a house worth Rs. 50,00,000. He has decided to put 10 lakhs of his own savings and borrowed Rs. 40,00,000 at a rate of 10% APR. The loan was to be repaid in Equated Monthly Instalments (EMIs) over a period of 15 years. The EMIs are to be paid in the beginning of each month. Prepare a loan amortization schedule. on excel

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 25E

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

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Step 1: Define loan amortization schedule.

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Step 2: Lay out the debt amortization schedule for the given loan.

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