A person takes a personal loan of ₹10,000 at the rate of 24% per annum for 2 years. His EMI by using flat rate method is :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹616.67
The EMI using flat rate method,
$EMI=\frac{\text{P+Total Interest}}{\text{Loan Tenure in Months}}$
$=\frac{10,000+10,000×0.24×2}{24}$
$=616.67$