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

₹51,666.67

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