Mr. Ram Lal is running a departmental store in Delhi and has 25 employees in his...

  

Transcribed Image Text:

Mr. Ram Lal is running a departmental store in Delhi and has 25 employees in his store. He is planning to open a new store in Sector 2 - Faridabad. Currently, he has already invested around 25 Lacs in his current departmental store and do not have much liquidity available to support the new store. For the same, he is planning to take a loan from a nationalised bank wherein the bank manager has provided few details about the loan. The loan amount which Mr. Ram Lal requires is Rs. 15,000,000. Bank is ready to provide the loan but at 12 percent interest rate per year and requires to be paid in 5 equal instalments payable at the end of each year. No, Mr. Ram Lal wants to calculate: a) What is the annual instalment payable at the end of each of the next 5 years? (5 marks) b) Prepare a loan amortization schedule for the 5-year loan period. (10 marks) c) What proportion of the instalment payable at the end of year 3, represents the principal repayment portion? (3 marks) Mr. Ram Lal is running a departmental store in Delhi and has 25 employees in his store. He is planning to open a new store in Sector 2 - Faridabad. Currently, he has already invested around 25 Lacs in his current departmental store and do not have much liquidity available to support the new store. For the same, he is planning to take a loan from a nationalised bank wherein the bank manager has provided few details about the loan. The loan amount which Mr. Ram Lal requires is Rs. 15,000,000. Bank is ready to provide the loan but at 12 percent interest rate per year and requires to be paid in 5 equal instalments payable at the end of each year. No, Mr. Ram Lal wants to calculate: a) What is the annual instalment payable at the end of each of the next 5 years? (5 marks) b) Prepare a loan amortization schedule for the 5-year loan period. (10 marks) c) What proportion of the instalment payable at the end of year 3, represents the principal repayment portion? (3 marks)