Sanjay takes a personal loan of ₹6,00,000 at the rate of 12% per annum for 'n' years, the EMI using flat rate method is ₹16,000. The value of n is:

5

The correct answer is Option (1) → 5

$EMI=\frac{\text{Principal+Total Interest}}{\text{Number of months}}$

Total Interest = $P×r×n$

$=6,00,000×\frac{12}{100}×n$

$=72,000×n$

Total Payment = P + Total Interest

$=6,00,000+72,000n$

Since EMI is 16,000 per month

Total Payment = $16,000×12n$

$6,00,000+72,000n=16,000×12n$

$6,00,000=1,92,000n-72,000n$

$6,00,000=1,20,000n$

$n=\frac{6,00,000}{1,20,000}=5$