A person amortizes a loan of ₹150000 for a new home by obtaining a 10 year mortgage at the rate of 12% compounded monthly. Find total interest paid (Given $a_{120/0.01}= 69.6891)$
Answer & explanation
Correct answer: option 3
The correct answer is option (3) : ₹108290.40
$P= ₹150000, i=\frac{12}{1200}=0.01, n =10× 12 = 120$
$EMI=\frac{P}{a_{\overline{n}/i}}=\frac{150000}{69.6891}$
$=₹2152.43$
Total interest paid $=n ×EMI-P$
$=120×2152.42-150000$
$=₹108290.40$