A person amortizes a loan of Rs 1500000 for renovation of his house by 8 years mortgage at the rate of 12% p.a. compounded monthly. Find the equated monthly installment.
(Given $(1.01)^{96}=2.5993, (1.01)^{57}=1.7633)$
Answer & explanation
Correct answer: option 1
The correct answer is option (1) : ₹24379.10
Given $P=₹1500000, n=12×8=96\, months $
i.e $i=\frac{12}{1200}=0.01$
$EMI=\frac{1500000×0.01(1.01)^{96}}{(1.01)^{96}-1}$
$=₹24379.10$