Mr. 'X' wishes to purchase a house for ₹49,65,000 with a down payment of ₹15,00,000 and balance amount in EMI for 25 years. If bank charges 6% per annum compounded monthly. Then the EMI is: [Given that $(1.005)^{300}= 4.4650$]

₹22325

The correct answer is Option (4) → â‚¹22325

House price $=4965000$

Down payment $=1500000$

Loan principal $P=4965000-1500000=3465000$

Rate of interest per month

$r=\frac{6}{12\times100}=\frac{1}{200}$

Time $=25$ years $=300$ months

EMI formula

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

Here $(1+r)^{300}=(1.005)^{300}=4.4650$

Substituting values

$EMI=\frac{3465000\times\frac{1}{200}\times4.4650}{4.4650-1}$

$EMI=\frac{17325\times4.4650}{3.4650}$

$EMI=\frac{77348.625}{3.4650}$

$EMI=22326.6$

Monthly EMI $\approx ₹22327$