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lllustratlon-2.2: Assume that a Rs.20,00,000 plant expansion is to be financed as
follows: The firm makes a 15% down payment and borrows the remainder at 9%
interest rate. The loan is to be repaid in 8 equal annual installments beginning 4
years from now. What is the size of the required annual loan payment ?
[Rs.3,97,750]
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Problem-2.7: Mr. X borrows Rs.1,00,000 at 8% compounded annually. Equal
annual payments are to be made for 6 years. However, at the time of the 4th
payment, the individual elects to pay off the loan. How much should be paid ?
{Rs.00,207}
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7:37 I 38:36

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lllustratlon-2.4: Assume that a 1O years savings annuity of Rs.2.000 per year is
beginning at year zero. The retirement annuity is to begin 15 years from now (the
first payment is to be received in year 15) and has to povide a 20 year annuity. If
this plan is arranged though a saving bank that pays interest at the rate of 7% per
year on the deposrted funds, what is the size of the yearly retirement annuity that
will result ?
(Rs.3,569]
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