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 :

50 months

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