Which of the following statements is true ?
A. EMI in flat rate method, $EMI =\frac{\text{Principle +Interest}}{\text{Number of Payment}}$
B. EMI in reducing balance method, $EMI= P×\frac{i}{1+(1+i)^n}$ where P = Principle, i = interest rate, n = no. of payments
C. In sinking fund, a fixed amount at regular intervals is deposited.
D. Approximately Yield to Maturity $=\frac{\text{Coupen Payment}+\frac{\text{Face Value + Present Value,}}{\text{Number of Payment}}}{\frac{\text{Face Value + Present Value}}{2}}$
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → A and C only
(A) EMI in flat rate method, $EMI =\frac{\text{Principle +Interest}}{\text{Number of Payment}}$
(C) In a Sinking fund, a fixed amount is deposited at regular intervals to accumulate a sum for a future liability.