Vishnu purchased a house from a company for ₹7,00,000 and make a down payments of ₹1,50,000. He repays the balance is 25 years by monthly installments at 9% compound monthly. What are monthly payments?
[Given that $(1.0075)^{-300}=0.1062878338]$
Answer & explanation
Correct answer: option 1
The correct answer is option (1) → ₹4,615.58
To calculate Vishnu's EMI,
$EMI=\frac{P×r(1+r)^n}{(1+r)^n-1}$
$P$ = Loan Amount = 7,00,000 - 1,50,000 = 5,50,000
$r$ = Monthly interest rate = $\frac{9}{12}=0.75\%$
$n$ = Loan term = 25 year × 12 = 300 months
$EMI=\frac{5,50,000×0.0075×(1.0075)^{300}}{(1.0075)^{300}-1}$
$=\frac{32,411.4}{6.848}≃₹4,615.58$