Immediately after completing your MBA, you wish to buy a house for ₹1,000,000. You plan to take a loan for the entire amount for a period of 10 years from the housing finance company.

The instalments are on annual basis, starting at the end of the year, and the interest rate is 10 per cent. What is the annual instalment?

After three years, you receive ₹300,000 as the will amount on the death of your beloved aunt. You pay up this amount to the housing finance company and ask them to reduce this from the principal outstanding on the loan and rework the annual instalment for a period of only five years instead of the remaining seven years. What is the reworked annual instalment?