My investment is only Rs. 20000, other cost that is incurred / notionally incurred is interest paid to bank and notional interest on my Rs. 20000. The returns of Rs. 2070 should be evaluated from this figure and not Rs. 100000.
RE:another way of calculating
by Gobinda Majumdar on Apr 03, 2007 04:04 PM Permalink
You are absolutely right we must consider investment from our pocket not of the bank. At the same time we must not forget the risk we had taken by taking loan. As had there been a great fall in the market you will have to pay back the bank from your own pocket.
