Mr. X wishes to purchase a house for ₹14,51,400 from a bank and decided to repay the loan by equal monthly installments (EMI) in 10 years. If bank charges interest at 9 % per annum compounded monthly, then the EMI is:

[Given that $(1.0075)^{120}=2.4514$]

₹18385.50

The correct answer is Option (1) → ₹18385.50

Loan amount:

$P = 1451400$

Monthly interest rate:

$r = \frac{0.09}{12} = 0.0075$

Total number of months:

$n = 10\times 12 = 120$

EMI formula:

$\displaystyle EMI = P\frac{r(1+r)^{n}}{(1+r)^{n}-1}$

$\displaystyle EMI = 1451400 \times \frac{0.0075 \times 2.454}{2.454 - 1}$

$= 1451400 \times \frac{0.018405}{1.454}$

$= 1451400 \times 0.01266$

$\approx 18378$

EMI = ₹18,378 (approximately)