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Interest Calculation of House Building Advance

• A Government Employee drawing a basic pay of Rs.4,500 was


sanctioned
an advance of Rs.2,25,000 which was paid in October 2006.

• The advance to be repaid in 100 installments of Rs.2,250 each.

• Rate of Interest 8.5% per annum.

• Recovery of the advance commenced from on Jan-2007

No. Month of Recovery Advance Amount Paid Recovered Amount IBB


225000
1 Jan-07 2250 222750
2 Feb-07 2250 220500
3 Mar-07 2250 218250
4 Apr-07 2250 216000
5 May-07 2250 213750
6 Jun-07 2250 211500
7 Jul-07 2250 209250
8 Aug-07 2250 207000
9 Sep-07 2250 204750
10 Oct-07 2250 202500
11 Nov-07 2250 200250
12 Dec-07 2250 198000
13 Jan-08 2250 195750
14 Feb-08 2250 193500
15 Mar-08 2250 191250
16 Apr-08 2250 189000
17 May-08 2250 186750
18 Jun-08 2250 184500
19 Jul-08 2250 182250
20 Aug-08 2250 180000
21 Sep-08 2250 177750
22 Oct-08 2250 175500
23 Nov-08 2250 173250
24 Dec-08 2250 171000
25 Jan-09 2250 168750
26 Feb-09 2250 166500
27 Mar-09 2250 164250
28 Apr-09 2250 162000
29 May-09 2250 159750
30 Jun-09 2250 157500
31 Jul-09 2250 155250
32 Aug-09 2250 153000
33 Sep-09 2250 150750
34 Oct-09 2250 148500
35 Nov-09 2250 146250
36 Dec-09 2250 144000
37 Jan-10 2250 141750
38 Feb-10 2250 139500
39 Mar-10 2250 137250
40 Apr-10 2250 135000
41 May-10 2250 132750
42 Jun-10 2250 130500
43 Jul-10 2250 128250
44 Aug-10 2250 126000
45 Sep-10 2250 123750
46 Oct-10 2250 121500
47 Nov-10 2250 119250
48 Dec-10 2250 117000
49 Jan-11 2250 114750
50 Feb-11 2250 112500
51 Mar-11 2250 110250
52 Apr-11 2250 108000
53 May-11 2250 105750
54 Jun-11 2250 103500
55 Jul-11 2250 101250
56 Aug-11 2250 99000
57 Sep-11 2250 96750
58 Oct-11 2250 94500
59 Nov-11 2250 92250
60 Dec-11 2250 90000
61 Jan-12 2250 87750
62 Feb-12 2250 85500
63 Mar-12 2250 83250
64 Apr-12 2250 81000
65 May-12 2250 78750
66 Jun-12 2250 76500
67 Jul-12 2250 74250
68 Aug-12 2250 72000
69 Sep-12 2250 69750
70 Oct-12 2250 67500
71 Nov-12 2250 65250
72 Dec-12 2250 63000
73 Jan-13 2250 60750
74 Feb-13 2250 58500
75 Mar-13 2250 56250
76 Apr-13 2250 54000
77 May-13 2250 51750
78 Jun-13 2250 49500
79 Jul-13 2250 47250
80 Aug-13 2250 45000
81 Sep-13 2250 42750
82 Oct-13 2250 40500
83 Nov-13 2250 38250
84 Dec-13 2250 36000
85 Jan-14 2250 33750
86 Feb-14 2250 31500
87 Mar-14 2250 29250
88 Apr-14 2250 27000
89 May-14 2250 24750
90 Jun-14 2250 22500
91 Jul-14 2250 20250
92 Aug-14 2250 18000
93 Sep-14 2250 15750
94 Oct-14 2250 13500
95 Nov-14 2250 11250
96 Dec-14 2250 9000
97 Jan-15 2250 6750
98 Feb-15 2250 4500
99 Mar-15 2250 2250
100 Apr-15 2250 0
225000 225000 13237500

Interest calculation as follows…

132375000 x 8.5
-------------------------- = 93765.63
12 x 100

Interest = Rs.93766