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 $(1.005)^{300}= 4.4650$]
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹22325
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 $\approx ₹22327$