A property is available for sale at a price of Rs.2.5 million.  The buyer can take a maximum housing loan of 85% of the property cost. The balance should be funded from her savings. The rate of interest on bank loan is 12% per annum. The loan will be amortized in 15 annual installments.

Required:

Show the repayment schedule of the housing loan.
How much is the total cash outflow and interest cash outflow for this loan

Answer rating: 100% (QA)

Given Property price Rs25 million Maximum housing loan 85 of the property cost 085 Rs25 million Rs21... View the full answer