How many years will it take to repay a Rs. 11,000 loan with annual payments of Rs. 1,241.08 at 5% interest?
Correct answer C. 12 years
Explanation
Dividing 11,000 by 1,241.08 gives an annuity factor of 8.8633, which matches the present value annuity factor for 12 years at 5%.
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