A person takes a car loan of ₹6,00,000 from a bank at an interest rate of 12% per annum for 4 years. The EMI under flat rate system is :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹18,500
$EMI=\frac{\text{Principal+Total Interest}}{\text{Number of months}}$
$=\frac{6,00,000+2,88,000}{48}=18,500$