Mr. Dev wishes to purchase an AC for Rs 45,000 with a down payment of Rs 5000 and balance in EMI for 5 years. If Bank charges 6% per annum compounded monthly then monthly EMI i s: ( use $\frac{0.005}{1-(0.005)^{-60}}= 0.0194$ )

Rs 776

The correct answer is Option (1) → Rs 776

To calculate the monthly EMI, we can use the formula for the EMI is,

$EMI=\frac{P×r×(1+r)^n}{(1+r)^n-1}$

$=\frac{40000×0.005×(1+0.005)^{60}}{(1+0.005)^{60}-1}$

$≃₹776$