If loan amount is Rs 5,000 and the amount of interest is Rs 500, find the effective interest rate: (a) when interest is paid on the maturity; (b) when interest is collected up front. Based on Tandon...

If loan amount is Rs 5,000 and the amount of interest is Rs 500, find the effective interest rate: (a) when interest is paid on the maturity; (b) when interest is collected up front.

Based on Tandon Committee recommendation, how much will a bank lend under the second method of lending if total current asset is Rs 60,000, current asset other than bank borrowing is Rs 15,000 and core current asset is Rs 7,500?