Shyamaji takes a loan of Rs. 20,00,000 with 10% annual interest rate for 10 years. What will be her EMI under flat rate system?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Rs. 33,333.33
Under the flat rate system, interest is charged on the full original principal for the whole period:
\( \displaystyle \text{Interest}=\frac{P\times R\times T}{100} \)
\( \displaystyle =\frac{2000000\times 10\times 10}{100} \)
\( \displaystyle =2000000 \)
\( \displaystyle \text{Total amount}=2000000+2000000=4000000 \)
The loan is repaid in 10 × 12 = 120 monthly instalments:
\( \displaystyle \text{EMI}=\frac{4000000}{120}=33333.33 \)
The EMI is Rs. 33,333.33.
CBSE Applied Mathematics (Class XII):
Methods of Calculation of EMI or Instalment
