Ram took a loan ₹3,60,000 from a bank at the rate of 16% p.a. for 4 years. His EMI, using flat rate method is :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹12,300
Using flat rate method,
$\text{EMI}=\frac{\text{Principal+Total interest}}{\text{Number of months}}$
$=\frac{3,60,000+3,60,000×\frac{16}{100}×4}{48}$
$=\frac{3,60,000+2,30,400}{48}$
$=\frac{5,90,400}{48}$
$=₹12,300$