Ram wishes to purchase a house for ₹15,00,000 and made a down payment of ₹5,00,000. If he can amortize the balance at 9% per annum compounded monthly for 25 years, then his EMI is: [Given $(1.0075)^{300} = 9.41$]

₹8391.80

The correct answer is Option (4) → ₹8391.80

Given:

Cost of house: ₹15,00,000

Down payment: ₹5,00,000 → Loan amount: ₹10,00,000

Interest rate: 9% per annum compounded monthly → monthly rate $i = \frac{9}{12}\% = 0.0075$

Tenure: 25 years → $n = 25 \cdot 12 = 300$ months

EMI formula for compound interest:

$\text{EMI} = \frac{P \cdot i \cdot (1 + i)^n}{(1 + i)^n - 1}$

Substitute values:

$\text{EMI} = \frac{10,00,000 \cdot 0.0075 \cdot (1.0075)^{300}}{(1.0075)^{300} - 1}$

Given: $(1.0075)^{300} = 9.41$

$\text{EMI} = \frac{10,00,000 \cdot 0.0075 \cdot 9.41}{9.41 - 1} = \frac{70,575}{8.41} \approx 8,387.37$