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Reverse Mortgage (RML) Numerical Questions to Calculate Quarterly installment:

Value of the property - Rs. 50,00,000

Loan Amount - 80%

Loan Tenor - 15 yea rs

Rate of interest - 10%

a. 21494

b. 24914

c. 29144

d. 29414

Ans - d

Calculate Quarterly installment

Here,

PV = 5000000

LTVR = 80/100 = 0.8

n = 15 * 4 = 60

I = 10/(4*100) = 10/400 = 0.025

= (5000000*0.8*0.025)/((1+0.025)^60-1)

= Rs. 9651

So, the Quarterly installment = Rs. 29,414