Mrs Dubey borrowed Rs 500000 from a bank to purchase a car and decided to repay by monthly installments in 5 years. The bank charges interest at 8% p.a. compounded monthly. Calculate the EMI.
(Given $(1.0067)^{60}=1.4928$)
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : $₹10147.89$
Given $P=₹500000$
$n= 12×5=60 \, \, months $
$i=\frac{8}{1200}=0.0067$
$∴EMI=\frac{P×i(1+i)^n}{(1+i)^n-1}$
$=\frac{500000×0.0067 ×(1.0067)^{60}}{(1.0067)^{60}-1}$
$=\frac{500000×0.0067×1.4928}{0.4928}$
$=₹10147.89$