Aarav took a personal loan of Rs. 6,00,000 at the rate of 10% per annum for 2 years. His EMI using a flat rate method will be
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs. 30,000
In the flat rate method the interest is charged on the original loan for the whole period:
\( \displaystyle \text{Interest}=6{,}00{,}000\times\frac{10}{100}\times 2 \)
\( =1{,}20{,}000 \)
The total to be repaid is Rs. 7,20,000, in \( 2\times 12=24 \) equal monthly instalments:
\( \displaystyle \text{EMI}=\frac{7{,}20{,}000}{24}=30{,}000 \)
CBSE Applied Mathematics (Class XII):
Methods of Calculation of EMI or Instalment
