A person having a monthly income of 60000/-, where he can save 30000/- for repaying any kind of loan. Then what would be the maximum permissible loan to employee if his employment is left for 25 years on 6% interest rate? Given the PV interest factor is 155.21

Here the Present value of an annuity can be used to calculate the loan amount P = PMT * [1 – [ (1 / (1+r)^n] / r] The [1 – [ (1 / (1+r)^n] / r] is the PVIF as 155.21. As such the loan = 30000*155.21 = Rs.46.5 lakh approximately.   Use the following information for the next 2 questions (Q35 and 36) RCB Ltd has to maintain a current ratio of 2 as per the loan covenant. As the year approaches ending, its current assets are Rs2,000,000 (Rs.100,000 in cash , Rs.900,000 in accounts receivables, Rs.1000,000 in inventory)and current liabilities are Rs.1080,000.