Mathematics · Interest & Financial Calculations
A corporate borrower in the cement industry undertakes a 'Carbon Capture and Storage' project that reduces its CO2 emissions by 50,000 metric tons per year. The company is registered under a voluntary carbon credit market where each Carbon Credit (representing 1 ton of CO2 avoided) is valued at 25 USD. If the company takes a 'Sustainability Linked Loan' of 100 million INR with an interest rate of 9% p.a., and the bank offers a 'Step-down' interest rate reduction of 50 basis points (0.5%) if the company generates at least 40,000 carbon credits. Calculate the total financial benefit to the company in one year (in INR), assuming 1 USD = 80 INR, including the value of the credits and the interest savings.
- 199,500,000 INR
- 2101,000,000 INR
- 3100,000,000 INR
- 4100,500,000 INR✓
Correct answer
100,500,000 INR
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