Anshu takes a personal loan of Rs. 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) → Rs. 51,666.67
In the flat rate method, simple interest is charged on the whole principal for the whole period, and principal plus interest is repaid in equal monthly instalments.
\(\text{Interest} = 1000000 \times 0.12 \times 2 = 240000\)
\(\text{Amount to repay} = 1000000 + 240000 = 1240000\)
\(\text{Number of instalments} = 2 \times 12 = 24\)
\( \displaystyle \text{EMI} = \frac{1240000}{24} \)
\(= 51666.67\)
So the EMI is Rs. 51,666.67.
CBSE Applied Mathematics (Class XII):
Methods of Calculation of EMI or Instalment
