- A) Interest Bearing Normal Loan (Only Principle is reduced)
Example: Employee has taken 1000rs as a loan with the interest of 1% on 1000. He wants to
Re-pay 1000rs in 5 install ments. That means 5* 200= 1000. In 5 periods he wants to clear the amount.
Example:
Period No: Monthly Installment interest (1%) Remaining
- 1. 01.04.2015-----------------200-----1% on 1000 = 10 ----------210 = 800
- 2. 01.05.2015-----------------200-----1% on 800 = 8 ------------208 =600
- 3. 01.06.2015-----------------200-----1% on 600 = 6-------------206 = 400
- 4. 01.07.2015-----------------200-----1% on 400 = 4 ------------204 = 200
- 5. 01.08.2015-----------------200-----1% on 200 = 2-------------202 = 0
Loan Amount | Principle |
|
1000 | 200 | 210 |
800 | 200 | 208 |
600 | 200 | 206 |
400 | 200 | 204 |
200 | 200 | 202 |
0 | - | - |
Here Monthly Principle amount (200) is same for all periods until Loan amount will get Zero.