Mr. X takes a loan of ₹2,00,000 with 10% annual interest rate for n years with EMI ₹5,000 at flat rate. Value of 'n' is :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 5 years
Let the loan tenure be $n$ years.
$EMI=\frac{\text{Total amount to be paid}}{Total months}$
$⇒\frac{2,00,000+20,000n}{12×n}=5,000$
$⇒n=\frac{2,00,000}{40,000}=5$ years