Rakshita plans to buy a house for Rs.1,00,00,000 with down payment of 20% of the value of house paid by her mother, Rest of the amount she wishes to pay in 25 years by equal monthly installment at an interest of 9% per annum compounded monthly. Then the EMI paid by her is: (Given $(1.0075)^{300} = 9$)
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs. 67,500 **
The earlier calculation used the wrong loan amount.
Correct loan amount:
House price = ₹1,00,00,000
Down payment = 20% = ₹20,00,000
Loan = ₹80,00,000 = 8,000,000
Given:
Monthly rate = 0.0075
$(1.0075)^{300} = 9$
EMI formula:
$\displaystyle EMI = P \cdot \frac{r(1+r)^n}{(1+r)^n - 1}$
Substitute:
$EMI = 8000000 \cdot \frac{0.0075 \cdot 9}{9 - 1}$
$EMI = \frac{540000}{8} = 67500$
Correct EMI ≈ ₹67,500 per month