Two banks are offering loan facility of Rs. 50,000 with an interest rate of 15% pa. for a period of 5 years Bank A offers the facility with interest rate of 15% pa with annual compounding and annual installment and Bank B with semiannual compounding and semiannual payment. You are required to calculate the installment amount and also the principal paid in the third installment for both options.
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Two banks are offering loan facility of Rs. 50,000 with an interest rate of 15% pa. for a period of 5 years Bank A offers the facility with interest rate of 15% pa with annual compounding and annual installment and Bank B with semiannual compounding and semiannual payment. You are required to calculate the installment amount
and also the principal paid in the third installment for both options.
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