(a) Calculate the EMI under ‘Flat Rate System’ for a loan of ₹ 5,00,000 with 10% annual interest rate for 5 years.

Calculate the EMI under ‘Flat Rate System’ for a loan of ₹ $\displaystyle 5,00,000$ with $\displaystyle 10$% annual interest rate for $\displaystyle 5$ years.

A machine costing ₹ $\displaystyle 2,00,000$ has effective life of $\displaystyle 7$ years and its scrap value is ₹ $\displaystyle 30$,000. What amount should the company put into a sinking fund earning $\displaystyle 5$% p.a., so that it can replace the machine after its usual life? Assume that a new machine will cost ₹ $\displaystyle 3,00,000$ after $\displaystyle 7$ years.

[Given that : $\displaystyle (1.05)^7=1.407$]