The EMI (in ₹) under the flat rate on a loan of ₹6,00,000 with 20% annual interest for 5 years is :
Answer & explanation
Correct answer: option 3
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
$=6,00,000+6,00,000$
$=12,00,000$
$EMI=\frac{Total\, amount}{Number\,of\,months}=\frac{12,00,000}{60}=20,000$