CMA Final · Strategic Financial Management · Digital Finance
A peer-to-peer lending platform lends ₹10,00,000 to a borrower at 15% p.a. for one year, with interest and principal paid at maturity. It charges the lender a 2% platform fee on principal at disbursal and the lender suffers no default. What is the lender's net return on the amount lent (including the fee as an outflow, so the investment is ₹10,00,000 + fee)?
The lender's return is about 14.70%. The total outlay is ₹10,20,000 including the ₹20,000 fee, and the interest earned is ₹1,50,000, giving 1,50,000 divided by 10,20,000, roughly 14.7%.
- A13.00%
- B12.75%Correct
- C15.00%
- D14.70%
Explanation
Fee = 2% x 10,00,000 = ₹20,000, so total outlay = ₹10,20,000. Interest = ₹1,50,000. Net gain = 1,50,000 - 20,000 = ₹1,30,000 on outlay of ₹10,20,000... but the fee is already part of the outlay, so the gain is ₹1,50,000 on ₹10,20,000 = 14.71%. Recomputing: the correct figure under this treatment is 14.70%.
Did you get it right without looking?
One question tells you little. A timed set on Digital Finance shows your real accuracy, how long you take and where you lose marks.
More Digital Finance questions
- A fintech firm expects to acquire customers at a cost of ₹1,200 each. Each customer yields an annual contribution of ₹600 for 4 years, with …
- A robo-advisory platform charges 0.75% p.a. on assets under management, billed quarterly on the opening balance of each quarter. A client op…
- A UPI merchant in Jaipur receives 2,000 transactions a day averaging Rs 450 each. A new government scheme pays an incentive of 0.25% of tran…
- A startup, BlockPay, plans to settle cross-border remittances using a stablecoin. Traditional route cost is 4% of the amount. The stablecoin…
- A blockchain-based trade-finance platform will cost a bank Rs 8 crore now. It is expected to save Rs 3 crore at the end of each year for 4 y…
- A blockchain-based settlement system will cost ₹5,00,00,000 now and save ₹1,80,00,000 per year in reconciliation costs for 4 years, with no …