Raman borrows a sum of ₹4,00,000 with total interest paid ₹2,00,000 and he is paying an EMI of ₹12,000 under flat rate system, then his loan tenure is :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 50 months
In the flat rate system,
$\text{EMI}=\frac{\text{Principal+Total Interest}}{\text{Loan Tenure}}$
$⇒12,000=\frac{4,00,000+2,00,000}{N}$
$⇒N=\frac{6,00,000}{12,000}=50$ months