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Assignment 1

Arsalan purchased a Suzuki Cultus car for Rs. 1,400,000 through bank financing. He made a 50% down payment of Rs. 700,000 and financed the remaining Rs. 700,000 through a 3-year lease at a monthly installment. The installment is due at the start of each month and the interest rate on the loan is KIBOR + 3%, which is currently 10.6% + 3% = 13.6%.

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Muzammil Qamar
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27 views

Assignment 1

Arsalan purchased a Suzuki Cultus car for Rs. 1,400,000 through bank financing. He made a 50% down payment of Rs. 700,000 and financed the remaining Rs. 700,000 through a 3-year lease at a monthly installment. The installment is due at the start of each month and the interest rate on the loan is KIBOR + 3%, which is currently 10.6% + 3% = 13.6%.

Uploaded by

Muzammil Qamar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assignment 1

Arsalan purchased Suzuki Cultus car through bank


lease financing. The total value of the car is Rs
1,400,000 of which Arsalan made 50% down
payment and balance amount was leased for 3
years on monthly installment. The installment is
due at the start of each month.

Required:
i. What would be the amount of the monthly
installment if interest rate is KIBOR + 3 %?
(KIBOR offer rate is 10.6%).
ii. Construct the loan amortization schedule.

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