Kindly solve out these 2 questions

Question

Q. 1=  If you want to get a loan but can only afford to pay Rs.13, 000 per month. How much can you borrow (loan amount) if the interest rate is 5% annually for 30 years?

 

 

 

 

Q.2=  Suppose you invest Rs. 5000 at the end of each year for 8 years in an account that pay interest at 8%, compounded annually. How much money would you have in the account at the end of the eight years?

Answer 1

Find the present value of an annuity where

PMT = 13,000

N = 360

i% = 0.416667

FV = 0

 

A financial calculator or a spreadsheet function solves this easily. the answer is 2,421,661

 

2. Here you have to find the future value of an annuity where

PMT = 5,000

N = 8

PV = 0

i% = 8%

 

FV = 53,183.14

 

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