Ram takes a personal loan of Rs. 10,00,000 at the rate of 12% per annum for 5 years. By using a flat rate method, EMI is
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 26,666.67
Under the flat rate method, interest is charged on the full loan for the whole period.
Interest = 10,00,000 × 12% × 5 = Rs. 6,00,000
Total amount = 10,00,000 + 6,00,000 = Rs. 16,00,000
Number of monthly instalments = 5 × 12 = 60
\( \displaystyle \text{EMI}=\frac{1600000}{60}=26666.67 \)
So the EMI is Rs. 26,666.67.
CBSE Applied Mathematics (Class XII):
Methods of Calculation of EMI or Instalment
