Good morning friends, welcome to the session. We are discussing the concept of installment. Before our listening to this session, I expect from your side to hear the session on simple interest and compound interest because installment is a part of simple interest and compound interest. Right now, in today's session, we are going to start with the concept of installment. To understand the concept of installment, we have to understand two things. The first thing is the concept of future value and present value. In general sense, present value is the same as principal, and future value is the same as the amount. For example, if a person has to pay rupees 10,000 after 3 years, and he wants to pay today, the money paid by the person today must be less than 10,000 because that 10,000 is due after 3 years, which is the future value of the money. He pays the money today, so we have to find the present value of the money. It depends on the rate of interest prevalent in the market. In the topic of installment, we just compare the future values of the installments. For example, a person takes a loan of rupees 10,000 that has to be paid after three years. It means the total future value of the loan is rupees 10,000. And he pays the money in three equal installments. Suppose the first installment is X, second installment is X, and the third installment is X. Here, we have to take a rose, whether the installment is paid at the beginning of the year or 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 the first year, he...
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Video instructions and help with filling out and completing Will Form 944 Pr Installment
