Video instructions and help with filling out and completing Will Form 944 Pr Installment

Instructions and Help about Will Form 944 Pr Installment

Good morning friends welcome to the session are discussing the concept of installment before our listening this session I expect from your sight to hear the session of simple interest and compound interest because installment is in part of the simple interest and compound interest right now in today's session we are going to start with a concept of installment for understanding the concept of is Talmud two things we have to understand the first thing is concept of face value sorry concept of future value and present value future value and present value right in general sense present value is same as to principal and future value is same as to amount in general sense we can say the present value is same as to feature and the present value is same as to principal and future value is same as to amount for example if a person has to pay rupees 10,000 after 3 years a person has taken a loan and he has to pay rupees 10000 after 3 years if he wants to pay today if he wants to pay today that simply means the money paid by the person today must be less than 10000 because that 10000 is due after 3 years that is the future value of the money and he pays the money today so we have to find the present value of the money it depends on the rate of interest and is prevalent in the market right and further or whether the rate of interest is taken on simple internal component does everything we have to take care of it in the topic of installment we just compare the future values of the installments for example a majesty a loan of rupees 10,000 and that has to be paid after three years that has to be payable after three years it means total switcher value of the loan is rupees 10,000 totally future value of the loan is rupees 10,000 and he paid the money in three equal installment suppose the fastest moment is X second installment is X and 30 solvent is X now here we have to take a rose rather installment is paid at the beginning of the career at the end of the year suppose it is paid at the end of the year it means actually he has to pay money up to three years and at the end of first year he paid rupees X that means this X rupees have been paid two years ago this X rupees have been paid two years ago right it means we have to take the future value of this because I am comparing that with 10000 now this is the principal and I have to take the future value after two years now it depends on the question what is the rate of interest rate of Industry 10% compounded annually by if I can say future value this is 1 plus 10 by 100 raised to power 2 second instalment is paid at the end of the second year means one year earlier it means the future value of this is 1 plus 10 500 raised to power 1 and finally X right and this is equal to rupees 10,000 your toddler future value and you are in a position to get your answer means for every question amidst all of it we are just compared we have just compare the future values and then solve it and find your answer right so this is an introduction to the topic now I am going to start with some different type of questions with different variates so that you can better understand the concept okay are 3 thing you have to take care of in the question the first thing that you have to take care when money is due when money is you right that is an infant as per to the question 7 they are take whether it's a question of SI or CI and third thing you have to take rather is Talmud is paid at the beginning of the year or at the end of the year installment to be paid in the beginning all in the end these things you have to take care of in every question of installment right for example I am going to start with some of the questions so that you are in a position to understand the concept it is given that a person burrowed rupees 20,000 a person borrowed rupees twenty two thousand and ten percent per annum compound interest that is given to you he repaid in two annual installment he repaid the money to annual installment payable at the end of the year instalment payable at end of year right you have to find the value of installment okay now when I look at this question I have to take care of these three variants first one when monies do he has to date borrowed to miss 20 2021 means this ready to the other is the present value right it is due after two years in two ways I will take the future value that is equal to twenty two thousand because it is a question of compound interest 1 + 10 of 100 raised to power to their the total future value that you have to pay now the second thing is installment is paid at the end of the year time it say that the fastest solvent is rupees X it is paid at the end of the first year it means it is paid one year earlier okay and in that case that is the present value I will take the future value of this X into 1 plus 10 by 100 raised to power 1 the second installment is paid on that day when the money is due at the end of the second year I have to pay rupees X and I have to solve it.