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Suppose you borrowed a certain amount of money at 12% interest rate and agreed to settle it with equal 10 annual installments each being Rs
Suppose you borrowed a certain amount of money at 12% interest rate and agreed to settle it with equal 10 annual installments each being Rs 100,000. After paying installments for 6 years you decide to reschedule the loan to settle it with eight semiannual installments starting from the end of year seven. a. How much is the outstanding balance at the end of year seven? b. How much is the value of a semi-annual installment starting from the end of year seven? (05 Marks) (Total 20 Marks)
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