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Smart Bag Business Entrepreneurship
Smart Bag Business Entrepreneurship
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Net Profit 0
Years to Recover Investment and Bank Loan
Here is the table for the number of years to get back the investment and bank loan:
Year Opening Balance Net Profit Closing Balance
1 1,00,00,000 4,80,000 1,04,80,000
2 1,04,80,000 17,37,600 1,22,17,600
3 1,22,17,600 29,93,280 1,52,10,880
4 1,52,10,880 45,67,194 1,97,78,074
5 1,97,78,074 63,99,064 2,61,77,138
As we can see from the table, the closing balance in the fifth year is greater than the total
investment of 1 crore (100 lakhs), which means that the investment has been recovered in
less than 5 years. Therefore, it will take less than 5 years to get back the investment and
bank loan.
Based on the calculations, we will be able to get our investment back in 4 years and 8
months, and we will be able to pay off our bank loan in 5 years and 8 months.