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A person buys a flat for which he makes down payment of ₹ 7,50,000 and the balance is to be paid in 10 years by monthly instalments of ₹ 22,000 each. If the bank charges interest at the rate of 12% per annum, then the actual price of the flat using flat rate system is :

Solution

✅ Correct Option: 2

Total EMI payments =22000×120=₹26,40,000= 22000 \times 120 = ₹26,40,000.

Flat rate: L(1+0.12×10)=26,40,000L(1 + 0.12 \times 10) = 26,40,000.

2.2L=26,40,000⇒L=₹12,00,0002.2L = 26,40,000 \Rightarrow L = ₹12,00,000.

Price =7,50,000+12,00,000=₹19,50,000= 7,50,000 + 12,00,000 = ₹19,50,000.

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