Manag., July-2016-Q17

17An employee borrowed a 3-year loan of RS 10,000 at 9% from his employer to buy a motorcycle. If employer requires three equal end-of-year repayments, then the annual instalment will be _______.

Option : B
Explanation : Calculation of Annual Installment
10,000 = A × PVFA3,009
10,000 = A × 2.531
By paying ` 3,951 each year for three years, you shall completely pay-off your loan with 9 percent interest. This can be observed from the loan-amortization schedule given under:

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