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A Pharma company has recently recruited 4 scientists at anaverage age of 27 and is looking to develop quite a fewpharmacological formulations. With a view to retain them thecompany proposes to offer a housing scheme to them on the followingterms and conditions:

1. The number of beneficiaries will be four in number
2. The total cost of purchasing apartments will be Rs.1 crore
3. PNBHFL offers an 18 year term @ 9.00% interest and HDFC offers15 years term @ 8% interest.
4. The company will pay the housing finance company on aninstallment basis.
5. A Down payment of 5% of the cost of the apartment has to bemade and recoverable from the employee in 24 installments. Theupfront payment will be made by the company.
6. In case of availing the loan from HDFC, 50% of the installmentwill be recovered from the employee on a monthly basis and in caseof availing the loan from PNBHFL 45% will be recovered from theemployee. The option of choosing the service rests with the companyonly.
7. Assume that employee deductions happen on the first day of themonth and housing loan payments made by the company happens on thelast day of the year.
8. The housing loan is offered on a fixed interest basis and EMIwill not change.
9. Assume the individual apartments are of equal value.

You are called upon to do thefollowing:

1. Calculate the two EMI options and choose the best one.