Mr X drawing annual salary of Rs. 2000000 has been enjoying a credit card from ABC Bank. The bank ha

Mr X drawing annual salary of Rs. 2000000 has been enjoying a credit card from ABC Bank. The bank has fixed a spending limit of Rs. 300000 lac on his card. During Dec 2016, he made purchase of Rs. 250000 and paid on due date (10 jan 2017) Rs. 190000 being a part of the outstanding amount of Rs. 300000. During 11 Jan 2017, he made additional purchase of Rs. 100000. Rate of interest charged by bank is 3 % per month. Answer the following questions 01. What would be the minimum payment requirement on credit card dues during any month? a.3% of due b.5% of due c.8% of As due d.10% of due Ans - b Minimum payment require 5% 02. As the bank charges interest at 3% per month, what would be the annual effective rate to the user? a. 36% b. 42.58% c. 39% d. None of the above Ans - b Solution Effective interest rate=(1+r)^n-1 =(1+0.03)^12-1 =1.42576-1 =0.42576 =42.58% 03. Daily interest charged on outstanding balance as on 11 Jan 2017 will be ...... a. Rs.207.12 b. Rs.210.72 c. Rs.202.10 d. Rs.207.00 Ans - a Solution Daily interest charged=Due outstanding*12/365*r =(110000+100000)*12/365*0.03 =210000*12*.03/365 =75600/365 =207.12 04. Total interest Charged on 10 Feb 2017 will be ...... a. Rs.6420 b. Rs.6214 c. Rs.6312 d. Rs.6210 Ans - b Solution Total interest charged= no of days outstanding * Daily interest From 11 Jan 2017 to 10 Feb 2017 = 30 days =30*207.12 =6214 05. If Mr A wants to clear all his dues on the due date on 10 Feb 2015, what amount would be required to pay ...... a. Rs.100000 b. Rs.110000 c. Rs.210000 d. Rs.216214 Ans - d Solution outstanding amount+additional purchase+interest =110000+100000+6214 =216214

 

It is ratio of loan amount availed by borrower to the total value of asset.

 

Suppose loan taken is 80 lacs value of property sa e home is 100 lacs then ltv is 80%

 

Outstanding is 60000/-How 110000/-Plz clarify madam

 

Minimum amount due will be 5%of the outstanding amount and for all other u please go through murgan sirs sample questions

 

Mr X drawing annual salary of Rs. 2000000 has been enjoying a credit card from ABC Bank. The bank has fixed a spending limit of Rs. 300000 lac on his card. During Dec 2016, he made purchase of Rs. 250000 and paid on due date (10 jan 2017) Rs. 190000 being a part of the outstanding amount of Rs. 300000. During 11 Jan 2017, he made additional purchase of Rs. 100000. Rate of interest charged by bank is 3 % per month.Answer the following questions01. What would be the minimum payment requirement on credit card dues during any month?a.3% of dueb.5% of duec.8% of As dued.10% of dueAns - bMinimum payment require 5%02. As the bank charges interest at 3% per month, what would be the annual effective rate to the user?a. 36%b. 42.58%c. 39%d. None of the aboveAns - bSolutionEffective interest rate=(1+r)^n-1 =(1+0.03)^12-1=1.42576-1=0.42576=42.58%03. Daily interest charged on outstanding balance as on 11 Jan 2017 will be ......a. Rs.207.12b. Rs.210.72c. Rs.202.10d. Rs.207.00Ans - aSolutionDaily interest charged=Due outstanding*12/365*r=(110000+100000)*12/365*0.03=210000*12*.03/365=75600/365=207.1204. Total interest Charged on 10 Feb 2017 will be ......a. Rs.6420b. Rs.6214c. Rs.6312d. Rs.6210Ans - bSolutionTotal interest charged= no of days outstanding * Daily interestFrom 11 Jan 2017 to 10 Feb 2017 = 30 days=30*207.12=621405. If Mr A wants to clear all his dues on the due date on 10 Feb 2015, what amount would be required to pay ......a. Rs.100000b. Rs.110000c. Rs.210000d. Rs.216214Ans - dSolutionoutstanding amount+additional purchase+interest=110000+100000+6214=216214

 

No he paid 190000. Outstanding Is 110000+ new withdrawal 100000

 

Outstanding is not 160000/-?... please clarify my doubt anyone

 

Purchase of 250000 and paid RS 190000 so unpaid amount is 60000 , why it is 110000

 

Same doubt madam.... outstanding is 60000+100000/- only?

 

Read qns carefully it is written " paid 190000 being a part of outstanding amount of 300000" . Thus 50000 is due due earlier. For the same reason he was not given the interest free period.

 

Sir plz clarify regarding the additional purchases of 100000 which is outstanding in current month is also taken into consideration for the calculation of interest. Is interest applicable on overall outstanding in case of non payment of total amount outstanding as on due date.

 

Unpaid amount is only 60000/- why it is 110000/-Plz guide me