Which of the following are correct about equated monthly installments (EMI)?

(A) The EMI depends on principal borrowed, rate of interest and tenure of the loan.
(B) It is a fixed amount made by borrower to the lender every month.
(C) The interest remains constant for every EMI in reducing balance method.
(D) As we pay off our loan, the outstanding principal amount decreases with every EMI in reducing balance method.

Choose the correct answer from the options given below:

(A), (B) and (D) only

The correct answer is Option (2) → (A), (B) and (D) only

(A) True. EMI depends on principal, interest rate, and tenure.

(B) True. EMI is a fixed monthly payment by the borrower.

(C) False. In reducing balance method, interest decreases with outstanding principal.

(D) True. Outstanding principal reduces with every EMI in reducing balance method.