If Mr. Ravi borrows a sum of ₹1,50,000 at an interest rate of 10% (flat) for a tenure of 3 years, then his EMI based on above data is (approximately) ₹:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) - 5417
$\text{Principal} = 150000,\;\; r = 10\% \text{ p.a.},\;\; t = 3 \text{ years}$
$\text{Flat interest} = P \cdot r \cdot t = 150000 \cdot 0.10 \cdot 3 = 45000$
$\text{Total amount} = 150000 + 45000 = 195000$
$\text{Total months} = 3 \times 12 = 36$
$\text{EMI} = \frac{195000}{36} \approx 5416.67$
The EMI is approximately ₹5417.