1.Company A is financing a new truck with a loan of Rs.10,000 to be repaid in 5 annual end-of-year installments at the rate of 8%, whereas, the second option with another company, Company B, is available to repay the same loan amount in 7 annual end-of-year installments at the rate of 6.5%. What option you would select?

2.Gomez Electronics needs to arrange financing for its expansion program. Bank A offers to lend Gomez the required funds on a loan in which interest must be paid monthly, and the quoted rate is 8 percent. Bank B will charge 9 percent, with interest due at the end of the year. What is the difference in the effective annual rates charged by the two banks? Also which bank should be preferred by the company to arrange financing?

3.A bank recently loaned you Rs.15,000 to buy a car. The loan is for five years (60 months) and is fully amortized. The nominal rate on the loan is 12 percent, and payments are made at the end of each month. What will be the remaining balance on the loan after you make the 30^th payment?