Question

If Mr. Ravi borrows a sum of ₹1,50,000 at an interest rate of 10% (flat) for a tenure of 3 years, then his EMI based on above data is (approximately) ₹:

• A. 5410
• B. 5412
• C. 5414
• D. 5417

Answer 1

The Correct Option is D

To calculate the EMI (Equated Monthly Installment) for Mr. Ravi who has borrowed ₹1,50,000 at a flat interest rate of 10% per annum for 3 years, we use the formula for EMI in a flat interest rate scenario:

The total interest is calculated as: Total Interest = Principal × Rate × Time

Principal (P) = ₹1,50,000

Rate of Interest (R) = 10% = 0.10

Time (T) = 3 years

First, calculate the total interest:

Total Interest = 150000 × 0.10 × 3 = ₹45,000

The total amount to be repaid is given by: Total Repayment = Principal + Total Interest

Total Repayment = 150000 + 45000 = ₹1,95,000

Next, calculate the EMI as follows:

EMI = Total Repayment / (Number of Months)

Number of Months = 3 years × 12 months/year = 36 months

EMI = 195000 / 36 = ₹5,416.67

Rounding off ₹5416.67 to the nearest whole number gives us ₹5417.

Hence, the approximate EMI is ₹5417.