Ques part 2—-
Sir yaha cap oct 2012 me buy kiya tha to 31 march 2013 ko jo settlement hogi usme 1/2 bhi krna chahiye tha na
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
In cap and floor we defer the premium initially paid in no of installments.
In this case, the interests rate payments is yearly basis so you will defer the premium paid in 4 installments. Had it been 6 monthly, you would divide it for 8 installments.
To answer your question whether to divide the interest amount by 1/2.
See, we have taken the loan om 1st April, the cap is taken on 1st October. But since the loan is taken on 1st April we will have to pay the interest for the entire year. Cap/floor is only to hedge the interest rate risk. Thus, interest will be paid for 1 full year.
Let me know if you have understood.