Avinash takes a personal loan of Rs. 100000 at the rate of 12% per annum for 5 years. By using a flat rate method, his EMI is equal to
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs. 2666.67
In the flat rate method, interest is charged on the full loan for the whole period:
\( \displaystyle \text{Interest}=100000\times 0.12\times 5=\text{Rs. }60000 \)
The total amount Rs. 1,60,000 is repaid in 5 × 12 = 60 equal instalments:
\( \displaystyle \text{EMI}=\frac{160000}{60} \)
\( \displaystyle =\text{Rs. }2666.67 \)
CBSE Applied Mathematics (Class XII):
Methods of Calculation of EMI or Instalment
