A person takes a home lean of ₹1200000 from a bank at an interest rate of 12% per annum for 10 years. The EMI under flat rate system is,
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹22000
To calculate EMI under flat Rate system is,
$EMI=\frac{\text{Principal+Total Interest}}{\text{Number of months}}$
$=\frac{12,00,000+12,00,000×0.12×10}{120}$
$=₹22000$