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
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
