Question

Surjeet purchased a new house, costing ₹ 40,00,000 and made a certain amount of down payment so that he can pay the balance by taking a home loan from XYZ Bank. If his equated monthly instalment is ₹ 30,000, at 9% interest compounded monthly (reducing balance method) and payable for 25 years, then what is the initial down payment made by him?

[Use (1.0075)⁻³⁰⁰ = 0.1062]

Answer 1

Purchase = ₹ 40,00,000

Down payment = x

Balance = 40,00,000 – x