Question – a) A loan of Rs. 100000 is to be repaid in 5 equal annual installments. If the loan carries a rate of 14% P.A., what is the amount of each installment?

Answer – a)

10000 will be paid in 5 equal annual installments

Loan rate is 14% annual.

100000 x 14/100 = 14000

So, 14000 x 12 = 168000

Payment will be = 16800 P.A