Vatsala takes a loan of Rs. 2,00,000 at an interest rate of 10% per annum for 5 years. Her EMI using flat rate method is,
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 5,000
In the flat rate method, simple interest is charged on the whole principal for the whole period.
\( I=P\times r\times t \)
\( I=200000\times 0.10\times 5=\text{Rs. }1,00,000 \)
\( \text{Total amount}=200000+100000=\text{Rs. }3,00,000 \)
The loan is repaid in 5 × 12 = 60 monthly instalments:
\( \displaystyle \text{EMI}=\frac{300000}{60}=\text{Rs. }5,000 \)
CBSE Applied Mathematics (Class XII):
Methods of Calculation of EMI or Instalment
