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PATEL INSTITUTE OF
MANAGEMENT AND COMPUTER
STUDIES
Assignment On Calculation of
EFFECTIVE INTEREST RATE
Submitted To:
Prof. Sandhya
Submitted By:
Gurjar pankaj k (34)
Modi Dhara J (59)
Kharpate Swapnil S (47)
Jadav Akshay (38)
Date: 18-12-2008
For the purpose of knowing interest rate on a car loan we visited Maruti Suzuki’s dealer Popular
wheeler pvt.ltd. Which is situated at Narol, Ahmedabad.from there we get information about the
payment criteria for purchasing car on loan.
We have to find out the different installments for 3 years, 5 years and 7 years and the difference rate
of interest for it. When we asked about it they have give us the following details.
ICICI BANK
=239148-200000
=39148
={1+(0.12/12)}^12-1
=0.1268
ICICI BANK
=270000-200000
=70000
={1+(0.125/12)}^12-1
=0.13.24
ICICI BANK
2. Loan of Rs.200000, Loan Period-7 Years, Installment-Monthly, Interest Rate-12.5%
=301056-200000
=101056
={1+(0.125/12)}^12-1
=0.13.24