The EMI (in ₹) under the flat rate on a loan of ₹6,00,000 with 20% annual interest for 5 years is :

₹20,000

The correct answer is Option (3) → ₹20,000

Total interest = Principal × Interest Rate × Loan tenure

$= 6,00,000×0.20×5$

$=6,00,000$

Total amount = Principal + Interest

$=6,00,000+6,00,000$

$=12,00,000$

$EMI=\frac{Total\, amount}{Number\,of\,months}=\frac{12,00,000}{60}=20,000$