Q11 Ans B:

This problem is related to annuity due. Either solve through the begin mode [BEG] or [BGN] in calculator or you can solve in the following way:

Take the first installment as the PV and the next 9 installments as the regular payment for the ordinary annuity, but the future value that you get here will be at the end of year 9 and then you have to find the future value at the end of 10th year.

PV = -10K, PMT=--10K, I/Y=8, N=9=> FV9 = 144,865

Now calculate the FV10= 144,865*1.08 =156,454.8

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Today's Question (Questions and answers provided by Knowledge Varsity)

Q12. I am buying a house for $100,000. I paid 15% cash as down payment and took loan for rest of the money. The loan term is 15 years and interest rate is 8% p.a. What is the EMI that I have to pay on this home loan. Assume end of the month payments are done.

A. $955.6

B. $807.9

C. $812.3

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