Question 1: Mr. Ram Lal is running a departmental store in Delhi and has 25 employees in his store. He is planning to op

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Question 1: Mr. Ram Lal is running a departmental store in Delhiand has 25 employees inhis store. He is planning to open a new store in Sector 2 –Faridabad. Currently, he hasalready invested around 25 Lacs in his current departmental storeand do not have muchliquidity available to support the new store. For the same, he isplanning to take a loan froma nationalised bank wherein the bank manager has provided fewdetails about the loan.The loan amount which Mr. Ram Lal requires is Rs. 15,000,000. Bankis ready to provide theloan but at 12 percent interest rate per year and requires to bepaid in 5 equal instalmentspayable at the end of each year. No, Mr. Ram Lal wants tocalculate:a) What is the annual instalment payable at the end of each of thenext 5 years?(5 marks)b) Prepare a loan amortization schedule for the 5-year loan period.(10 marks)
c) What proportion of the instalment payable at the end of year3, represents theprincipal repayment portion?