Ravi borrowed Rs. 1,00,000 from a bank at the rate of 10% per annum for 2 years, then EMI using flat rate method is:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → ₹ 5,000
$\text{Principal} = 100000,\;\; r = 10\%,\;\; t = 2 \text{ years}$
$\text{Flat interest} = 100000 \cdot 0.10 \cdot 2 = 20000$
$\text{Total amount} = 100000 + 20000 = 120000$
$\text{Months} = 2 \times 12 = 24$
$\text{EMI} = \frac{120000}{24} = 5000$
The EMI is ₹5000.