Priya took a loan of ₹2,50,000 from a bank at the rate of 10% per annum for 5 years. Her EMI, using FLAT RATE METHOD, is :

₹6250

The correct answer is Option (3) → ₹6250

Total interest = Principal × Rate × Time

$=2,50,000×\frac{10}{100}×5$

$=1,25,000$

Total Repayment = Principal + Total Interest

$= 2,50,000+1,25,000=3,75,000$

$EMI=\frac{\text{Total Repayment}}{\text{Number of Months}}=\frac{3,75,000}{5×12}$

$=₹6250$