Kavya takes a personal loan of ₹10,00,000 at the rate of 12% per annum for 5 years, then the EMI by using flat rate method is

₹26,666.66

The correct answer is Option (1) → ₹26,666.66 **

Principal = ₹10,00,000

Rate = 12% per annum

Time = 5 years

Total interest = $P \times R \times T$

$= 1000000 \times 0.12 \times 5$

$= 600000$

Total amount to be repaid = $1000000 + 600000 = 1600000$

Total months = $5 \times 12 = 60$

EMI = $\frac{1600000}{60} = 26666.67$

The EMI using the flat rate method is ₹26,666.67.