Mr. Bharti wishes to purchase a flat for ₹6000000 with a down payment of ₹1000000 and balance in equal monthly payments for 20 years. If bank charges 7.5% p.a. compounded monthly, calculate the EMI.
(Given $(1.00625)^{240}=4.4608)$
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : $₹40279.70$
Cost of flat $=₹60,00,000$
Cash payment $=₹10,00,000$
Balance $=₹50,00,000$
Given $P=₹50,00,000$
$n=12×20=240 months $
$i=\frac{7.5}{1200}=0.00625$
$∴EMI=\frac{5000000×0.00625×(1.00625)^{240}}{(1.00625)^{240}-1}$
$=₹40279.70$