Short-term borrowings will include all loans within a period of _____ from the date of the loan.
6 months
12 months
18 months
None of these
Short-term borrowings will include all loans within a period of 12 months from the date of the loan.
Short-term loans are required for purchasing machinery, constructing fences and digging wells. Such loans are generally stretched over a period of 12 months to 3 years.
A man borrows ₹5000 at 12 % compound interest payable every six months. He repays ₹1800 at the end of every six months. Calculate the third payment he has to make at the end of 18 months in order to clear the entire loan.