Mr Jain takes a personal loan of ₹10,00,000 at 12% rate of interest per annum for 3 years. His EMI by flat rate method is :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹37777.77
$EMI = \frac{Loan\,Amount+Total\,Interest}{Loan\,terms\,in\,months}$
⇒ Total interest = $10,00,000×\frac{12}{100}×3=3,60,000$
$∴ EMI=\frac{13,60,000}{36}=37777.77$