Mr. Dharmendra Patel purchased a motorcycle of Rs 150000 with Rs Rs 25000 down payment. He wishes to repay balance in equal monthly payments in 4 years. If bank charges 9% p.a. compounded monthly, calculate the EMI.
(Given $(1.0075)^{48}=1.4314)$
Answer & explanation
Correct answer: option 1
The correct answer is option (1) : ₹3110.66
Cost of motorcycle = ₹150000
Cash payment = ₹25000
So, balance =₹150000- ₹25,000
$= ₹125000$
Given $P= ₹125000, n = 12× 4= 48\, months $
$i=\frac{9}{1200}= 0.0075$
$∴EMI=\frac{125000×0.0075(1.0075)^{48}}{(1.0075)^{48}-1}$
$= ₹3110.66$