CASE STUDY CHALLENGE

Financial Math: Home Loan Analysis

In the year 2010, Mr. Aggarwal took a home loan of ₹ 30,00,000 from State Bank of India at 7.5% p.a. compounded monthly for 20 years.

Note: Use (1.00625)240 = 4.4608; (1.00625)91 = 1.7629.

Based on the above information, answer the following questions:

Answer the following:

(i) Determine the EMI. [1]
(ii) Find the principal paid by Mr. Aggarwal in the 150th instalment. [1]
(iii) (a) Find the total interest paid by Mr. Aggarwal.

— OR —

(b) How much was paid by Mr. Aggarwal to repay the entire amount of home loan?

[2]