Rs 30000 Computer Advance to CGE interest will be Rs 8600 ie 11.5% pa

Computer Advance for Central Government Employees
How to calculate the interest amount for Computer Advance…
In this modern world, things became essential for day to day life which was once a dream for ordinary people in the past years.
Before ten years, buying a computer was an uphill task but it became an important part now a days in each and every houses.
But, the rate of interest for the ‘Computer Advance’ given for the Central Government Employees remains the same. An interest rate of 11.5% p.a. is
very high as expressed by the employees.
The advance amount of the Rs.30,000 will be recovered in 5 years through monthly deductions and the interest amount of Rs.8600 which is more…
We, on behalf of all Central Government Employees urge the JCM members to recommended the decreasing or eliminating this rate of interest.
If an employee receive Rs.30,000 as Computer Advance, calculate the interest amount in two methods, one is Formula method and other is IBB method.

Formula Method:-
Date of Advance : 1.1.2008
No. of Installments : 60 Months
Rate of Interest : 11.5%
Formula : n/2 (a+1) x r/100 x 1/12
Interest Calculation = 60/2 (30,000) x 11.5/100 x 1/12
= Rs.8625
IBB Method :-

Month IBB
1 Jan-08 30000 500 32 Aug 14500 500
2 Feb 29500 500 33 Sep 14000 500
3 Mar 29000 500 34 Oct 13500 500
4 Apr 28500 500 35 Nov 13000 500
5 May 28000 500 36 Dec 12500 500
6 Jun 27500 500 37 Jan-11 12000 500
7 Jul 27000 500 38 Feb 11500 500
8 Aug 26500 500 39 Mar 11000 500
9 Sep 26000 500 40 Apr 10500 500
10 Oct 25500 500 41 May 10000 500
11 Nov 25000 500 42 Jun 9500 500
12 Dec 24500 500 43 Jul 9000 500
13 Jan-09 24000 500 44 Aug 8500 500
14 Feb 23500 500 45 Sep 8000 500
15 Mar 23000 500 46 Oct 7500 500
16 Apr 22500 500 47 Nov 7000 500
17 May 22000 500 48 Dec 6500 500
18 Jun 21500 500 49 Jan-12 6000 500
19 Jul 21000 500 50 Feb 5500 500
20 Aug 20500 500 51 Mar 5000 500
21 Sep 20000 500 52 Apr 4500 500
22 Oct 19500 500 53 May 4000 500
23 Nov 19000 500 54 Jun 3500 500
24 Dec 18500 500 55 Jul 3000 500
25 Jan-10 18000 500 56 Aug 2500 500
26 Feb 17500 500 57 Sep 2000 500
27 Mar 17000 500 58 Oct 1500 500
28 Apr 16500 500 59 Nov 1000 500
29 May 16000 500 60 Dec 500 500
30 Jun 15500 500 Jan-13 0
31 Jul 15000 500 915000 15500

Interest Calculation = 915000/100 x 11.5/100 x 1/12
= Rs.8769
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