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IRR calculation help

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by musicfreak007 » Tue Nov 22, 2011 4:16 am
Guys I am trying to get my basics right in maths. please find a simple question below:

X lends Y a sum of INR 100000 at an interest rate of 16.25% (reducing) for a period of 3 years which he expects to be paid back in 36 equal installment. At the same time X takes a deposit of INR 12500 from Y at an interest rate of 8%(reducing) for which Y expects to be paid back in 36 equal installment. The processing fee charged by X is INR 750 (being taken upfront). How much annual IRR is the X making from the whole transaction?

Kindly help me solving this on excel as well.

Many thanks
A
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Source: — Problem Solving |

by user123321 » Tue Nov 22, 2011 6:56 am
musicfreak007 wrote:Guys I am trying to get my basics right in maths. please find a simple question below:

X lends Y a sum of INR 100000 at an interest rate of 16.25% (reducing) for a period of 3 years which he expects to be paid back in 36 equal installment. At the same time X takes a deposit of INR 12500 from Y at an interest rate of 8%(reducing) for which Y expects to be paid back in 36 equal installment. The processing fee charged by X is INR 750 (being taken upfront). How much annual IRR is the X making from the whole transaction?

Kindly help me solving this on excel as well.

Many thanks
A
is it 44,666 INR ??
please provide the choices.

user123321
Just started my preparation :D
Want to do it right the first time.
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by chaitanyabhansali » Tue Nov 22, 2011 9:25 am
45ooo?
Answer please..!
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by musicfreak007 » Tue Nov 22, 2011 11:37 pm
Can you help me with the calculations you did to arrive to this answer. Sorry I dont have any answer. Would much appreciate if the mentors/ experts out here can throw some light.
Thanks
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