Renu takes a loan of Rs. 12,00,000 with 12% annual interest for 10 years on flat rate basis.
Match the List-I with List-II
| List-I | List-II | ||
| (A) | Principal of the loan | (I) | Rs. 14,40,000 |
| (B) | Total interest on the principal | (II) | Rs. 26,40,000 |
| (C) | EMI | (III) | Rs. 12,00,000 |
| (D) | Total amount paid in 10 years | (IV) | Rs. 22,000 |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) - (III), (B) - (I), (C) - (IV), (D) - (II)
In the flat rate method, interest is charged on the full principal for the whole period.
(A) Principal of the loan
This matches (III) Rs. 12,00,000.
The principal is the amount borrowed.
(B) Total interest on the principal
This matches (I) Rs. 14,40,000.
\( \displaystyle I=P\times r\times t=12{,}00{,}000\times 0.12\times 10 \)
\( \displaystyle I=14{,}40{,}000 \)
(C) EMI
This matches (IV) Rs. 22,000.
The total amount is repaid in 10 × 12 = 120 equal monthly instalments:
\( \displaystyle EMI=\frac{P+I}{120}=\frac{26{,}40{,}000}{120} \)
\( \displaystyle EMI=22{,}000 \)
(D) Total amount paid in 10 years
This matches (II) Rs. 26,40,000.
\( \displaystyle P+I=12{,}00{,}000+14{,}40{,}000=26{,}40{,}000 \)
So the matching is (A)-(III), (B)-(I), (C)-(IV), (D)-(II).
CBSE Applied Mathematics (Class XII):
Methods of Calculation of EMI or Instalment
