Computer Advance for Central Government Employees ...And the rate of Interest 11.5%

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 e 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 Instalments : 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.8769

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
 

 
Source - cgstaffnews