Shyam bought a car in 2023 worth ₹7 lakh. He made a down payment of ₹2.5 lakh and took a loan for the rest of the amount at the rate 12% p.a. for four years. The monthly EMI paid by Shyam in:

(given (1.01)⁴⁸ = 1.6122)

₹ 11,850.75

The correct answer is Option (3) → ₹ 11,850.75

$\text{Cost} = 700000,\;\; \text{Down payment} = 250000$

$\text{Loan} = 450000$

$r = 12\% \Rightarrow \text{monthly rate} = \frac{12}{12} = 1\% = 0.01$

$n = 4 \times 12 = 48$

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

$= \frac{450000 \cdot 0.01 \cdot 1.6122}{1.6122 - 1}$

$= \frac{4500 \cdot 1.6122}{0.6122}$

$= \frac{7254.9}{0.6122} \approx 11860$

The monthly EMI is approximately ₹11,860.