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THE INSTITUTE OF MANAGEMENT SCIENCES

Pak-AIMS  
 

ASSIGNMENT # 1
MATHS ² II

SUBMITTED TO:

SIR SARFARAZ

SUBMITTED BY:

- IMRAN TARIQ
- SHOAIB TAUSEEF
- àASSAAN FAKàAR
Car Financing (Mehran)
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Calculation:

Total cost of Mehran = 499,000/-

Down payment 20% = 99,800/-

Markup = 18.62%

Financial Amount = 399,200/- (pay order)

N.o of leasing years = 5 years

Financial amount per year = 399,200/5 = 79,840/-

Application of Annuity:
I= 0.1862 n= 5
Formula:

S (5)= (1+i)^n ʹ 1/ i

S (5) = (1 + 0.1862)^5 ʹ 1/0.1862

S (5) = 7.2422

Calculation of Installment after interest:

= Financial amount per year x S (5)

= 79840 (7.24223)

= 578217.248/-

Calculation of additional payment:

= Yearly installment after interest ʹ yearly installment before interest

= 578217.248 ʹ 399200

= 179,017.248/-

Calculation of additional payment yearly:

Additional payment/5 = 179017.248/5 = 35,803.44/-

Calculation of yearly payment:

= Financial amount per year + Additional amount per year

= 79840 + 35803.44

= 115,643.4496/-

Calculation of Insurance:

1st year: 4.5% of total value = 4.5% of 499,000 = 22,455/-

2nd year: 5% of total value = 5% of 499,000 = 24,950/-

3rd year: 5.5% of total value = 5.5% of 499,500 = 27,472.5/-

4th year: 6% of total value = 6% of 499,500 = 29,970/-

5th year: 6.5% of total value = 6.5% of 499,500= 32,467.5/-


›otal Payment per year:

= Yearly payment + yearly insurance

1st year: 115643.4496 + 22455 = 138,098.4496/-

2nd year: 115643.4496 + 24950 = 140,593.4496/-

3rd year: 115643.4496 + 27472.5 = 143,115.94/-

4th year: 115643.4496 + 29970 = 145,613.4496/-

5th year: 115643.4496 + 32467.5 = 148,110.9496/-

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