Suppose you are going to take a loan of amount of Rs. 500,000, for a period...

 

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Suppose you are going to take a loan of amount of Rs. 500,000, for a period of 4 years @ 15% interest rate compounded semiannually. Recall the concept of amortization and preparing amortization schedule, you are required to provide below mentioned information in the given format. Requirement #01: Based on above information, provide following information in the given table (2 marks) No. of Installments Interest rate Requirement #02: Prepare amortization table based on provided information in the following format (16 marks) Installment No. of Installments Amount Installment Amount No. of compounding periods Interest amount Interest Amount Annuity type (Ordinary or due) Requirement # 03: Analyze the trend in the following items of amortization table (Clearly mention whether the given item is showing an increasing trend, decreasing trend or constant trend over the period of amortization)-2 marks Principal amount Principal amount Balance Balance Suppose you are going to take a loan of amount of Rs. 500,000, for a period of 4 years @ 15% interest rate compounded semiannually. Recall the concept of amortization and preparing amortization schedule, you are required to provide below mentioned information in the given format. Requirement #01: Based on above information, provide following information in the given table (2 marks) No. of Installments Interest rate Requirement #02: Prepare amortization table based on provided information in the following format (16 marks) Installment No. of Installments Amount Installment Amount No. of compounding periods Interest amount Interest Amount Annuity type (Ordinary or due) Requirement # 03: Analyze the trend in the following items of amortization table (Clearly mention whether the given item is showing an increasing trend, decreasing trend or constant trend over the period of amortization)-2 marks Principal amount Principal amount Balance Balance

Answer rating: 100% (QA)

Requirement 01 No of Installments Interest rate No of compounding periods Annuity type 8 15 8 Or... View the full answer