Anush takes a loan of ₹150000 @ 16% annual interest for 5 years. His EMI (Equally Monthly Installmant) on monthly basis under flat rate system is:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹4500
Principal = 150000
Rate = 16% per year
Time = 5 years
Total interest (flat rate):
$150000 \times 0.16 \times 5 = 120000$
Total amount to be repaid:
$150000 + 120000 = 270000$
Number of monthly instalments:
$5 \times 12 = 60$
EMI = total amount / number of instalments:
$ \frac{270000}{60} = 4500$
The EMI is ₹4500.