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 $\frac{0.005}{1-(0.005)^{-60}}= 0.0194$ )
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs 776
To calculate the monthly EMI, we can use the formula for the EMI is,
$EMI=\frac{P×r×(1+r)^n}{(1+r)^n-1}$
$=\frac{40000×0.005×(1+0.005)^{60}}{(1+0.005)^{60}-1}$
$≃₹776$