Bhola takes a loan of ₹5 lakh with 10% annual interest rate for 5 years. The EMI under flat rate system is:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 12500
$\text{Loan amount}=500000.$
$\text{Rate}=10\% \text{ per annum}.$
$\text{Time}=5 \text{ years}.$
$\text{Total interest}=500000\times\frac{10}{100}\times5=250000.$
$\text{Total amount payable}=500000+250000=750000.$
$\text{Total number of months}=5\times12=60.$
$\text{EMI}=\frac{750000}{60}=12500.$
$\text{EMI under flat rate system}=₹12500.$