Anshu takes a personal loan of ₹10,00,000 at the rate of 12% per annum for 2 years, then the EMI by using flat rate method is
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹51,666.67 **
Principal = ₹10,00,000
Rate = 12% per annum
Time = 2 years = 24 months
Under the flat rate method:
Interest = $P \times r \times t$
$= 10{,}00{,}000 \times 0.12 \times 2$
$= 2{,}40{,}000$
Total amount to be repaid:
$10{,}00{,}000 + 2{,}40{,}000 = 12{,}40{,}000$
EMI = $\frac{12{,}40{,}000}{24}$
$= 51{,}666.67$
The EMI is ₹51,666.67